Skip to main content

Full text of "North Carolina Register v. 1 no. 1 (4/15/1986)"

See other formats


The 



Received 

SEP U 1986 

Law ubrary 



NORTH CAROLINA 

REGISTER 



IN THIS ISSUE. 




GENERAL STATUTES 

EXECUTIVE ORDERS 

JUDICIAL ORDERS 

ADMINISTRATIVE ORDERS 

STATEMENTS OF ORGANIZATION 

PROPOSED RULES 

LIST OF RULES AFFECTED 



ISSUE DATE: APRIL 15, 1986 
Volume 1 • Issue 1 • Pages 1-73 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published monthly and 
contains information relating to agency, executive, legislative and 
judicial actions required by or affecting Chapter 150B of the 
General Statutes. All proposed administrative rules and amend- 
ments filed under Chapter I50B must be published in the Register. 
The Register will typically comprise approximately one hundred 
pages per issue of legal text. 

State law requires that a copy of each issue be provided free 
of charge to each county in the state and to various state officials 
and institutions. The North Carolina Register is available by 
yearly subscription at a cost of ninety-five dollars ($95.00) for 
12 issues. 

Requests for subscription to the North Carolina Register should 
be directed to the Office of Administrative Hearings, P. O. 
Drawer 1 1666, Raleigh, N. C. 27604. Attn: Subscriptions. 



ADOPTION, AMENDMENT, AND REPEAL OF RULES 

An agency intending to adopt, amend, or repeal a rule must 
first publish notice of the proposed action in the North Carolina 
Register. The notice must include a reference to the Statutory 
Authority for the action; the time and place of the public hearing 
and a statement of how public comments may be submitted to 
the agency either at the hearing or otherwise; the text of the 
proposed rule or amendment; and the proposed effective date. 

The Director of the Office of Administrative Hearings has 
authority to publish a summary, rather than the full text, of any 
amendment which is considered to be too lengthy. In such case, 
the full text of the rule containing the proposed amendment will 
be available for public inspection at the Rules Division of the 
Office of Administrative Hearings and at the office of the 
promulgating agency. 

Following publication of the proposal in the North Carolina 
Register, at least 60 days must elapse before the agency may take 
action on the proposed adoption, amendment or repeal. 

When final action is taken, the promulgating agency must file 
any adopted or amended rule with the Office of Administrative 
Hearings. If it differs substantially from the proposed form 
published as part of the public notice, the adopted version will 
again be published in the North Carolina Register. 

A rule, or amended rule, cannot become effective earlier than 
the first day of the second calendar month after the adoption is 
filed. 

Proposed action on rules may be withdrawn by the pro- 
mulgating agency at any time before final action is taken by the 
agency. 



TEMPORARY RULES 

Under certain conditions of an emergency nature, some 
agencies may issue temporary rules. A temporary rule becomes 
effective when adopted and remains in effect for the period 
specified in the rule or 120 days, whichever is less. An agency 
adopting a temporary rule must begin normal rule-making 
procedures on the permanent rule at the same time the temporary 
rule is adopted. 



NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is a 
compilation and index of the administrative rules of 25 state 
agencies and 38 occupational licensing boards. The NCAC 
comprises approximately 15,000 letter size, single spaced pages 
of material of which approximately 35% is changed annually. 
Compilation and publication of the NCAC is mandated by G.S. 
150B-63(b). 

The Code is divided into Titles and Chapters. Each state agency 
is assigned a separate title which is further broken down by 
chapters. Title 21 is designated for occupational licensing boards. 

The NCAC is available in two formats. 

( 1 ) In looseleaf pages at a minimum cost of two dollars and 
50 cents ($2.50) for 10 pages or less, plus fifteen cents 
($0.15) per each additional page. 

(2) On microfiche. The microfiche edition is revised semi- 
annually (March and October) and can be purchased for 
forty dollars ($40.00) per edition. Due to the volume 
of the Code, the complete copy can only be purchased on 
microfiche. The NCAC on microfiche is updated 
monthly by publication of a "List of Rules Affected" 
which sets out rules filed the previous month, the action 
taken, and the effective date of the change. This list is 
published in the North Carolina Register. 

Requests for looseleaf pages of rules or the NCAC on 
microfiche should be directed to the Office of Administrative 
Hearings. 



NOTE 

The foregoing is a generalized statement of the procedures to 
be followed. For specific statutory language, it is suggested that 
Articles 2 and 5 of Chapter 150B of the General Statutes by 
examined carefully. 



CITATION TO THE NORTH CAROLINA REGISTER 

The North Carolina Register is cited by volume, issue, page 
number and date. 1:1 NCR 101-201, April 1, 1986 refers to 
Volume 1, Issue 1, pages 101 through 201 of the North Carolina 
Register issued on April 1, 1986. 



North Carolina Register. Published monthly by the 
Office of Administrative Hearings, P. O. Drawer 11666, 
Raleigh. North Carolina 27604, pursuant to Chapter 150B 
of the General Statutes. Subscriptions ninety-five dollars 
($95.00) per year. 

North Carolina Administrative Code. Published in 
March and October by the Office of Administrative 
Hearings. P. O. Drawer 11666, Raleigh, North Carolina 
27604, pursuant to Chapter 150B of the General Statutes. 
Subscriptions forty dollars ($40.00) per edition. 



NORTH CAROLINA REGISTER 



ISSUE CONTENTS 



I. GENERAL STATUTES 
Chapter 15 OB . . 
Chapter 7A . . . 




II. EXECUTIVE ORDERS 

Executive Orders 1-25 



III. JUDICIAL ORDERS 
Appointment of 
Robert Arthur Melott 



Office of Administrative Hearings 
P. 0. Drawer 11666 
Raleigh, NC 27604 
(919) 733 - 2673 



Staff: 

Robert A. Melott, 

Director 
Molly Mason, 

Director of Rules Publication 
Genie Rogers , 

Executive Legal Specialist 
Ruby Creech, 

Publications Coordinator 
Myrtice Becoat, 

Clerk 
Mary Fowler, 

Wordprocecsor 
Ernestine Parker. 

Wordprocessor 
Tinmy Poole, 

Records Clerk 



3 

21 



23 



45 



IV. ADMINISTRATIVE ORDERS 

Office of Administrative 
Hearings Seal 46 

Appointment of 

Beecher Reynolds Gray ... 47 
Appointment of 

Fred Giibert Morrison* Jr . 43 
Appointment of 

Angela Rebecca Bryant ... 49 
Appointment of 

Thomas R. West 50 

V. STATEMENTS OF ORGANIZATION 
Office of Administrative 
Hearings 51 

VI. PROPOSED RULES 

Office of Administrative 
Hearings 

General 52 

Rules Division 52 

Hearings Division .... 61 

VII. LIST OF RULES AFFECTED 

Volume 10, No. 1 71 

(April 1, 1936) 

VIII. CUMULATIVE INDEX 73 



NORTH CAROLINA REGISTER 
Publication Deadlines and Schedule: 
(April 1986 - March 1937) 



Issue 


Last Day 


Last Day 


Earliest 


Earliest 


Earliest 


Date 


for 


for 


Date for 


Date for 


Effective 




Filing 


Electronic 


Fubi ic 


Adoption 


Date 






Filing 


Hearing 


by Agency 




04/15/36 


03/25/86 


04/01/86 


05/15/35 


06/14/86 


03/01/86 


05/15/36 


04/24/^6 


05/01/86 


06/14/86 


07/14/86 


09/01/36 


06/16/86 


05/27/C5 


06/03/86 


7/16/86 


08/15/36 


10/01/36 


07/15/86 


06/25/86 


07/02/36 


08/14/86 


09/13/36 


1 1/01/86 


08/15/86 


07/28/86 


08/04/36 


09/14/86 


10/14/36 


12/01/86 


09/15/35 


08/26/86 


09/02/86 


10/15/86 


1 1/14/86 


01/01/87 


10/15/86 


09/25/86 


10/02/86 


1 1/14/36 


12/14/86 


02/01/87 


1 1/14/86 


10/23/86 


10/30/36 


12/14/86 


01/13/87 


03/01/87 


12/15/36 


1 1/25/86 


12/02/86 


01/14/87 


02/13/87 


04/01/87 


01/15/87 


12/29/86 


01/05/37 


02/14/87 


03/16/87 


05/01/37 


02/16/37 


1/26/87 


02/02/37 


03/13/87 


4/17/87 


06/01/37 


03/16/87 


02/23/87 


03/02/87 


04/15/87 


05/15/37 


07/01/37 



NORTH CAROLINA REGISTER 



GENERAL STATUTES OF NORTH 

CAROLINA 

CHAPTER 150B 

ADMINISTRATIVE PROCEDURES ACT 



150B-1. Policy a nd 
scope . --(a) The policy of the 
State is that the three powers 
of government, legislative, 
executive, and judicial, are, 
and should remain, separate. 
The intent of this Chapter is to 
prevent the commingling of those 
powers in any administrative 
agency and to ensure that the 
functions of rule making, 
investigation, advocacy, and 
adjudication are not all 
performed by the same person in 
the administrative process. 

(b) The purpose of this 
Chapter is to establish as 
nearly as possible a uniform 
system of administrative rule 
making and adjudicatory 
procedures for State agencies. 

(c) This Chapter shall 
apply to cverv agency, as 
defined in G "S . 150B-2U), 
except zo the extent and in the 
particulars that any statute, 
including subsection (d) of this 
section, makes specific 
provisions to the contrary. 

(d) The following are 
specifically exempted from the 
provisions of this Chapter: the 
Administrative Rules Review 
Commission, the Employment 
Security Commission. the 
Industrial Commission, the 
Occupational Safety and Health 
Review Board, and the Utilities 
Commission . 

The North Carolina National 
Guard is exempt from the 
provisions of this Chapter in 
exercising its court-martial 
jurisdiction . 

The Department of 
Correction is exempt from the 
provisions of this Chapter, 
except for Article 5 of this 
Chapter and G.S. 150B-13 which 
shall apply. 

Articles 2, 3, and 3A of 
this Chapter shall not apply to 
the Department of Transportation 
in rule making or administrative 
hearings as provided for by 
Chapter 20 of the General 
Statutes or to the Department of 
Revenue . 

Article 4 of this Chapter, 
governing judicial review of 
final administrative decisions, 
shall apply to The University of 
North Carolina and its 
constituent or affiliated 
boards, agencies, and 
institutions, but The University 



of North Carolina and its 
constituent or affiliated 
boards, agencies, and 
institutions are specifically 
exempted from the remaining 
provisions of this Chapter. 
Article 4 of this Chapter shall 
not apply to the State Banking 
Commission, the Commissioner of 
Banks, the Savings and Loan 
Division of the Department of 
Commerce, and the Credit Union 
Division of the Department of 
Commerce . 

Article 3 of this Chapter 
shall not apply to agencies 
governed by the provisions of 
Article 3A of this Chapter, as 
set out in G.S. 1503-3S(a). 

1503-2. De finitions . 
--As used in this Chapter, 

C 1 ) "Agency" means any 
agency, institution, b< .:d, 
commission, bureau, department, 
division, council, member of the 
Council of State, or officer of 
the State government of the 
State of North Carolina but docs 
not include any agency in the 
legislative or judicial branch 
of the State government; and 
does not include counties, 
cities, towns, villages, other 
municipal corporat ions or 
political subdivisions of the 
State or any agencies of such 
subdivisions, or local boards of 
education, other local public 
districts, units or bodies of 
any kind, or private 
corporations created by act of 
the General Assembly. 

(2) "Contested case" means 
any administrative proceeding, 
by whatever name called, in 
which the legal rights, duties, 
or privileges of a party are 
required by lav? to lie determined 
after an opportunity for an 
adjudicatory hearing. 
"Contested case" includes 
licensing and any administrative 
proceeding to levy a monetary 
penalty regardless of whether 
the statute authorizing such a 
penalty requires an adjudicatory 
hearing. "Contested case" does 
not include rule making, 
declaratory rulings, or the 
award or denial of a scholarship 
or grant . 

(2a) "Effective" means that 
a valid rule lias been filed as 
required by G.S. 150B-59 and 
either lias not been delayed by 
or has been returned to the 
Administrative Rules Review 
Commission as required by G.S. 
143A-55.3. A rule that is 
effective is enforceable to the 
extent permitted by law. 

(3) "License" means any 
certificate, permit or other 
evidence, by whatever name 



NORTH CAROLINA REGISTER 



called, of a right or privilege 
to engage in any activity, 
except licences issued under 
Chapter 20 a;id Subchapter I of 
Chapter 105 of the General 
Statutes and occupational 
licenses . 

(4) "Licensing" means any 
administrative action issuing, 
failing to issue, suspending, or 
revolving a license or 
occupational license. 
'Licensing' does not include 
controversies over whether an 
examination was fair or whether 
the applicant passed the 
examination . 

(4a) "Occupational 

license" means any certificate, 
permit, or other evidence, by 
whatever name called, of a right 
or privilege to engage in a 
profession, occupation, or field 
of endeavor that is Issued by an 
occupational licensing agency. 

(''ib) "Occupational 

licensing agency" means any 
board, commission, committee or 
other agency of the State of 
North Carolina which is 
established for the primary 
purpose of reguLating the entry 
of persons inco, and/or the 
conduct of persons within a 
particular profession, 

occupation or field of endeavor, 
and which is authorized to issue 
and revoke licenses. 
'Occupational licensing agency' 
does not include State agencies 
or departments which may as only 
a part of their regular function 
issue permits or licenses. 

(5) "Party" means any 
person or agency named or 
admitted as a party or properly 
seeking as of right to be 
admitted as a party and includes 
the agency as appropriate; 
provided this subdivision shall 
not be construed to permit the 
hearing agency or any of its 
officers or employees to appeal 
its ov;n decision for initial 
judicial review. 

(6) "Fcrson aggrieved" 
means any person or group of 
persons of common interest 

directly or indirectly affected 
substantially in his or its 
person, property, or employment 
by an administrative decision. 

(7) "Person" means any 
natural person, partnership, 
corporation, body politic and 
any unincorporated association, 
organization. or society which 
may sue or be sued under a 
common name . 

(3) "Residence" means 
domicile or principal place of 
business . 

(8a) "Rule" means any 
agency regulation, standard or 



statement of general 
applicability that implements or 
interprets laws enacted by the 
General Assembly or Congress or 
regulations promulgated by a 
federal agency or describes the 
procedure or practice 
requirements of any agency not 
inconsistent with laws enacted 
by the General Assembly. The 
term includes the amendment or 
repeal of a prior rule. The 
term <' es not include the 
following : 

a. Statements 

concerning only the internal 
management of an agency or group 
of agencies, including policies 
and procedures manuals, if such 
a statement does not directly or 



substantially 



fee t 



:he 



procedural or substantive rights 
or duties of persons not 
employed by the agency or group 
of agencies. 

b. Budgets and budget 
policies and procedures issued 
by the Director of the Budget, 
by the head of a department, as 



defined by G . ', 



14; 



or G . S . 



143B-3. by an occupational 
licensing board, as defined by 
G.S. 93B-1, or by the State 
Board of Elections. 

c . Nonbinding 

interpretative statements within 
the delegated authority of the 
agency that merely define, 
interpret or explain the meaning 
of a statute or other provision 
of law or precedent . 

d. A form, the 
contents or substantive 
requirements of which are 
prescribed, by rule or statute or 
the instructions for the 
execution or use of the form. 

e . 5 tatemen t s of 
agency policy made in the 
context of another proceeding, 
including : 

1 . declaratory 
rulings under G.S. 150B-17; 

2 . orders 

establishing or fixing rates or 
tariffs . 

f . Statements of 
agency policy, provided that the 
agency policy is not 
inconsistent with any law 
enacted by the General Assembly, 
communicated to the public by 
use of signs or symbols, 
concerning : 

1 . the use or 
creation of public roads or 
bridges ; 

2. the 
boundaries of public facilities 
and times when public facilities 
are open to the public; or 

3 . safety in use 
of public facilities. 



NORTH CAROLINA REGISTER 



y. Statements that 
set forth criteria or guidelines 
to be used by the staff of an 
agency in performing audits, 
invest igat ions , or inspections; 
in settling financial disputes 
or negotiating financial 
arrangements; or in the defense, 
prosecution, or settlement of 
cases ; 

h. Scientific, 

architectural , or engineering 
standards, forms, or procedures. 
(9) "Valid" means that the 
rule lias been adopted pursuant 
to the procedure required by 
law. A valid rule is 
unenforceable until it is made 
effective . 

150B-3. Special 
p rovisions o n li cen sing . — ( a ) 
When an applicant or a licensee 
makes a timely and sufficient 
application for issuance or 
renewal of a license or 
occupational license, including 
the payment of any required 
license fee, the existing 
license or occupational license 
docs not expire until a decision 



on the application ii 



finally 



made by the agency, and if the 
application is denied or the 
terms of the new license or 
occupational license are 
limited, until the lzist day for 
applying for judicial review of 
the agency order. This 
subsection does not affect 
agency action summarily 
suspending a license or 
occupational license under 
subsections (b) and (c) of this 
sec tion . 

(b) Before the 
commencement of proceedings for 
the suspension, revocation, 
annulment, withdrawal, recall, 
cancellation. or amendment of 
any licence other than an 
occupational license, the agency 
shall give notice to the 
licensee, pursuant to the 
provisions of G.S. 1503-23. 
Before the commencement of such 
proceedings involving an 
occupational license, the agency 
shall give notice pursuant, to 
the provisions of G.S. 150B-38. 
In either case, the licensee 
shall be given an opportunity to 
show compliance with all lawful 
requirements for retention of 
the license or occupational 
license . 

(c) If the agency finds 
that the public health, safety, 
or welfare requires emergency 
action and incorporates this 
finding in its order, summary 
suspension of a license or 
occupational license may be 
ordered effective on the date 
specified in the order or on 



service of the certified copy of 
the order at the last known 
address of the licensee, 
whichever is later, and 
effective during the 
proceedings. The proceedings 
shall be promptly commenced and 
determined . 

Nothing in this subsection 
shall be construed as amending 
or repealing any special 
statutes, in effect prior to 
February 1, 1976, which provide 
for the summary suspension of a 
license . 



Article 2. 
Rule Making , 
150B-9. 



Hi nimum 



procedural 






re 


qu 


ircisen 


ts; 


limit at ions 




on 


ruJ 


e ; 


ro a k 


mq 


au thori ty ; 


no 


crin 


:uia 


.1. 


sane t i 


oris 



authorized 



•-(a) It is the 

this Article to 

basic minimum 

for the 

repeal 



intent of 
establish 

procedural requirements 
adoption, amendment, or 
of administrative rules. Except 
for temporary rules which are 
provided for in G.S. 150B-13, 
the provisions of this Article 
are applicable to the exercise 
of any rule-making authority 
conferred by any statute, but 
nothing in this Article repeals 
or diminishes additional 
requirements imposed by law or 
any summary power granted by law 
to the State or any State 
agency. No rule hereafter 
adopted is valid unless adopted 
in substantial compi iance with 
this Article . 

(b) Each agency shall 
adopt, amend, svxspcnd or repeal 
its rules in accordance with the 
procedures specified in this 
Article and pursuant to 
authority delegated by lav; and 
in full compliance with its 
duties and obi igat ions . No 
agency may adopt any rule that 
implements or interprets any 
statute or other legislative 
enactment unless the power, 
duty, or authority to carry out 
the provisions of the statute or 
enactment is specifically 
conferred on the agency in the 
enactment, nor may any agency 
make any rule enlarging the 
scope of any trade or profession 
subject to licensing. 

(c) The power to declare 
what shall constitute a crime 
and how it shall be punished and 
the power to establish standards 
for public conduct are vested 
exclusively in the General 
Assembly. No agency may adopt 
any rule imposing a criminal 
penalty for any act or failure 
to act, including the violation 
of any rule, unless the General 
Assembly authorizes a criminal 



NORTH CAROLINA REGISTER 



or requests . 
officer of the 
Administra tive 
publish these 



sanction and specifies a 
crimi.:il penalty for violation 
of the rule . 

Cd) No agency may adopt as 
a rule the verbatim text of an;/ 
federal or North Carolina 
statute or any federal 
regulation, but an agency may 
adopt all or any part of such 
text by reference under G.S. 
1503-14. 

1 50B- 1 . Stateme nts of 
org nnizat ion a nd mean s_ 
t o be pu bli s hed. —To as 
interested persons dealing with 
it, each agency shall. in a 
manner prescribed by the 
Administrative Rules Review 
Commission, prepare a 
description of its organization, 
stating the process whereby the 
public may obtain information or 
malce submissions 
The chief hearing 
Office of 
Hearings shall 
descriptions annually. 

1503-1 1 . Sp ecial 
requ irem ents . --In addition to 
other rule-making requirements 
imposed by law, each agency 
shall: 

(1 ) Adopt rules setting 
forth the nature and 
requirements of all formal and 
informal procedures available, 
including a listing of all forms 
that are required by the agency. 
Procedures concerning only 
internal management which do not 
directly affect the rights of or 
procedures available to the 
public shall not be adopted as 
rules . 

(2) Make available 
public inspection all rules 
all other written statement 
policy or interpretations 
formulated, adopted, or used by 
the agency in the discbarge of 
its functions, except those used 
only for internal management of 
the agency. 

(3) Submit to the Director 
of the Budget a summary of any 
proposed rule requiring the 
expenditure or distribution of 
State funds and obtain approval 
of such expenditure or 
distribution of State funds 
prior to publishing the notice 
of public hearing required by 
G.S. 1503-12(2). For purposes 
of this subdivision the term 
'State funds' shall have the 
same moaning as is set out in 
G.S. 143-1 n:ul shall also apply 
to the funds of all occupational 
licensing boards included under 
G.S. 1503-1. The agency shall 
include a f.'-cal note with any 
proposed rule, other inn a 
temporary rule, so submitted. 
The fiscal note shall state what 



for 

and 

of 



effect. if any. the proposed 
rule will have on the revenues, 
expenditures, or fiscal 
liability of the State &,.' its 
agencies or subdivisions. The 
fiscal note shall include an 
explanation of how such effect, 
if any, was computed. 

1 5 B - 1 2 . Proced ure for 
adootion o.l 



ruler 



— (a) 

Before the adoption, amendment 
or repeal of a rule, an agency 
shall give notice of a public 
hearing and offer any per.' on an 
opportunity to present data, 
opinions, and arguments. The 
notice shall be given within the 
time prescribed by any 
applicable statute, or if none 
then at least 30 days before the 
public hearing and at least GO 
days before the adoption, 
amendment, or repeal of the 
rule. The notice shr. 1 include: 



( 1 ) 



reference 



to 



statutory authority under which 
the action is proposed; 

(2) The tir:e and place of 
the public hearing and a 
statement of the manner in 'which 
data, opinions, and arguments 
may be submitted to the agency 
either at the hearing or at 
other times by any person; and 

(3 J The text of the 
proposed rule, or amendment in 
the form required by G.S. 
1 503-63 (d2) and the proposed 
effective date of the rule or 
amendment . 

(b) The agency shall 
transmit copies of the notice to 
the chief hearing officer of the 
Office of Administrative 
Hearings, the Attorney General, 
and the Governor . 

(c) The agency shall 
publish the notice in the North 
Carolina Register and as 
prescribed in any applicable 
statute . 

The agency may also publish 
the notice or a synopsis of ..o 
notice in other ways selected by 
the agency to give notice to 
persons likely to be affected by 
the proposed rule. Methods that 
may be employed by the agency, 
depending upon the 
circumstances , include 

publication of the notice in one 
or more newspapers of general 
circulation or, when 
appropriate, in trade, industry. 
govcrnmcnt.il or professional 
publicn t ions . 

(d) The public hearing 
shall not be conducted as a 
contested case unless a specific 
statute requires that the 
proposed rule be adopted by 
adjudicatory procedures . 

(c) The proposed rule 
shall not be changed or modified 



NORTH CAROLINA REGISTER 



after the notice required by 
this section is published and 
before the rule-making hearing. 
The agency shall consider fully 
all written and oral submissions 
respecting the proposed rule. 
Upon adoption of a rule, the 
agency, if requested to do so by 
an interested person either 
prior to adoption or within 30 
days thereafter, shall issue a 
concise statement of the 
principal reasons for and 
against its adoption, 
incorporating therein its 
reasons for overruling the 
consideration urged against its 
adoption. The record in every 
rule-inaking proceeding under 
this Article shall remain open 
at least 30 days either before 
after the hearing for the 
of receiving written 
and any such comments 
included in the hearing 
All comments received, 
as any statement of 
to an interested 
this section, shall 
in the rule-making 



or 

purposes 
comments , 
shall be 
records . 
as well 
reasons issued 
person under 
be included 
record . 

(f ) No 
is required 



rule 



or 



of 
an 
is 



rule-making hearing 
for the adoption, 
amendment, or repeal of a rule 
which solely describes forms or 
instructions used by the agency. 

(g) No rule-making hearing 
is required if the 
Administrative Rules Review 
Commission certifies that the 
amendment to a rule does not 
change the substance of the 
and that the amendment is: 

(1 ) A relet tering 
renumbering instruction; or, 

(2) The substitution 
one name for another when 
organisation or position 
renamed; or, 

(3) The correction of a 
citation to rules or laws which 
has become inaccurate since the 
rule was adopted because of 
repealing or renumbering of the 
rule or law cited; or 

(4) The correction of a 
similar formal defect; cr 

(5) A change in 
information that is readily 
available to the public such as 
addresses and telephone numbers. 

(h) No rule-making hearing 
is required to repeal a rule if 
the repeal of the rule is 
specifically provided for by the 
Constitution of the United 
States, the Constitution of 
North Carolina, any federal or 
North Carolina statute, any 
federal regulation, or a court 
order . 

1 5 B - 1 3 . Tem pera ry 
rules . — (a) Except as 
provided in subsection (L) of 



this section, if an agency which 
is not exempted from the notice 
and hearing requirements of this 
Article by G.S. 150B-1 
determines in writing that: 

( ] ) Adherence to the 
notice and hearing requirements 
of this Article would be 
contrary to the public interest; 
and that 

(2) The immediate 
adoption, amendment, or repeal 
of a rule is necessitated by and 
related to: 

a. A threat to public 
health, safety, or welfare 
resulting from any natural or 
man-made disaster or other 
events that constitute a life 
threatening emergency; 

b . The effective date 
of a recent act of the General 
Assembly or the United States 
Congress ; 

c . A federal 
regulation; or 

d. A court order, 
the agency nay adopt, amend, or 
repeal the rule without prior 
notice or hearing or upon any 
abbreviated notice or hearing 
the agency finds practicable. 
The agency must accompany its 
rules filing with the chief 
hearing officer of the Office of 
Administrative Hearings and the 
Governor with the agency's 
written certification of the 
finding of need for the 
temporary rule, together with 
the reasons for that finding and 
a copy of the notice of hearing 
on the proposed permanent rule. 

The written cert if icat ion 
of the finding of need for the 
temporary rule shall be signed 
by: 

( 1 ) The member of the 
Council of State in the case of 
the Departments of Tustice, 
Insurance, Public Education, 
Labor, Agriculture, Treasurer, 
State Auditor, or Secretary of 
State . 

(2) The chairman of the 
board in the case of an 
occupational licensing board. 

(3) The Governor in the 
case of all other agencies. 

(b) If the Department of 
Crime Control and Public Safety, 
Transportation, Revenue, or 
Correction determines in writing 
that the immediate adoption, 
amendment, or repeal of a rule 
is necessitated by: 

( 1 ) The public health, 
safety, or welfare; 

(2) The effective date of 
a recent act of the General 
Assembly or the United States 
Congress ; 

(3) A federal regulation; 
or 



NORTH CAROLINA REGISTER 



(4) A court order, 
the agency may adopt, amend, or 
repeal the rule. The agency 
must accompany its rule filing 
with the chief hearing officer 
of the Office of Administrative 
Hearings and tiio Governor with 
the agency's written 
certification of the finding of 
need for the temporary rule 
signed by the Governor together 
with the reasons for that 
finding. In the case of the 
Department of Correction, in 
addition to the reasons set 
forth in subdivisions ( 1 ) 
through (4) of this subsection, 
the Department may file a 
temporary rule when necessary 
for the management and control 
of persons under the custody or 
supervision of the Department in 
extraordinary circumstances as 
certified by the Secretary. The 
Department shall file any 
temporary rule within two 
working days of its adoption by 
the Secretary under G.S. 148-11. 

(c) Rules filed under 
subsections (a) and (b) of this 
section shall be effective for a 
period of not longer than 120 
days. An agency adopting a 
temporary rule shall begin 
normal rule-making procedures on 
the permanent rule under this 
Article at the same time the 
temporarv rule is adopted. 

~ 1 5CB- 1 4 . Adopt ion by 

referen ce . --An 
adopt by reference 
without publishing 
matter in full : 

( 1 ) All or any part of a 
code, standard. cr regulation 
which lias been adopted by any 
other agency of this State or by 
any agency of the United States 
or by a generally recognized 
organization or association; 

(2) Any plan or material 
which is adopted to meet the 
requirements of any agency of 
the United States and approved 
by that agency; or 

(3) Any plan. material, 
manual, guide or other document 
establishing job application or 



agency may 
in its rules, 
the adopted 



employment 
procedures 
other than 
Commission . 
Commission , 
incorporate 



practices or 

of any State agency 

the State Personnel 

The State Personnel 

however* shall 

by refc. nee in its 



rules job classification 
standards, including but not 
limited to those relating to 
qualifications and salary 
levels . 

The reference shal] fully 
identify the adopted matter by 
date and otherwise . The 
reference shall not cover any 
later amendments and editions of 



the adopted matter, but if the 
agency wishes to incorporate 
them in its rule it shall amend 
the rule or promulgate a new 
rule. The agency shall have 
available copies of the adopted 
matter for inspection and the 
rules shall state where copies 
of the adopted matter can be 
obtained and the amount of any 
charge for the copy as of the 
time the rule is adopted. 

1 5 E - 1 5 . Conti mi at io n of 
rules . --When a law authorizing 
or directing an agency to 
promulgate rules is repealed, 
and (i) substantially the same 
rule-making power or duty is 
vested in the same or a 
successor agency by a new 
provision of law. or tii) the 
function of the agency to which 
the rules are related is 
transferred to another agency by 
law cr executive order, the 
existing rules of the original 
agency shall continue in effect 
until amended or repealed, and 
the agency or successor agency 
may repeal any rule relating to 
the transferred duty or 
function. When a lav creating 
an agency or authorizing or 
directing it to promulgate rules 
is repealed or the agency is 
abolished and (i) substant ially 
the same rule-making power or 
duty is not vested in the same 
or a 

law and 
the acencv 



by a new 
Cii) the 
to which 

related is not 
another agency, 



same rule-ma! 
is not vested in 
successor agency 
provision o " 
function of 
the rules are 
transferred to 
the existing applicable rules of 
the original agency are 
automatically repealed as of the 
effective date of the law 
repealing the agency's 
rule-making power or abolishing 
the agency . 

1 5 B - 1 6 . Petition for 

ado pti on of ru ler:. --Any person 
may petition an agency to 
promulgate, amend, or repeal a 
rule, and may accompany his 
petition with such data, views, 
and arguments as he thinks 
pertinent. Each agency shall 
prescribe by rule the form for 
petitions and the procedure for 
their submission, consideration, 
and disposition. Within 30 days 
after submission of a petition, 
the agency shall either deny the 
petition in writing, stating its 
reasons for the denial. or 
initiate rule-making proceedings 
in accordance with G.S. 1503-12 
and G.S. 150D-13: provided. 
however, commissions and boards 
shall act on a petition at their 
next regularly scheduled 
meeting. but in any case no 
later than 120 davs after 



NORTH CAROLINA REGISTER 



submission of a petition. 
Denial of the petition to 
initiate rule waking under this 
section shall be considered a 
final agency decision for 
purposes of judicial review. 

15013-17. Dec lara tory 
rul iiiTr . --On request of a 
person aggrieved, an agency 
shall issue a declaratory ruling 
as to the validity of a rule or 
as to the applicability to a 
given state of facts of a 
statute administered by the 
agency or of a rule or order of 
except when the 
good cause finds 
of a ruling 
The agency shall 
its rules the 
in which rulings 
not be issued. A 



the agency 
agency for 
issuance 
undesirable . 
prescribe in 
circumstances 
shall or shall 
declaratory ruling is binding on 
the agency and the person 
requesting it unless it is 
altered or set aside by the 
court . An agency may not 
retroactively change a 
declaratory ruling, but nothing 
in this section prevents ni 
agency from prospectively 
changing a declaratory ruling. 
A declaratory ruling is subject 
to judicial review in the same 
manner as an order in a 
contested case. Failure of the 
agency to issue a declaratory 
ruling on the merits within GO 
days of the request for such 
ruling shall constitute a denial 
of the request as well as a 
denial of the merits of the 
request and shall be subject to 
judicial review. 

Article 
Admin j.strat ive 
150B-23. 

assig nment of h ea ring of f icer ; 
lie^ ring 
in torvent ion 



3. 
Hearings . 

Commenceroen bj 



requir ed ;_ 



ryotij 

Except 



(a) txcepr as 
provided in subsection (al), all 
contested cases other than those 
conducted under Article 3A of 
this Chapter shall be commenced 
by the filing of a petition with 
the Office of Administrative 
Hearings. Any petition filed by 
a party other than an agency 
shall be verified or supported 
by affidavit and shall state 
facts tending to establish that 
the agency named as 
respondent has deprived 
petitioner of property, 
ordered the petitioner to 



the 

the 

has 

pay a 



fine or civil penalty, or has 
otherwise substantially 

prejudiced the petitioner's 
rights and that the agency: 

(1) exceeded its authority 
or jurisdiction; 

(2) acted erroneously; 

13) failed to use proper 
procedure ; 



(4) acted arbitrarily or 
capriciously; or 

(5) failed to act as 
required by law or rule. 

The parties in a contested case 
shall be given an opportunity 
for a hearing without undue 
delay . 

All contested cases under 
Chapter 126 of the General 
Statutes shall be conducted in 



:he Office 



Administrative 



Hearings. Except in contested 
cases under Chapter 126 of the 
General Statutes, a party may 
waive the right to have a 
contested case conducted by a 
hearing officer in the Office of 
Administrative Hearings in the 
petition filed to commence the 
case, in which case the 
contested case shall be 
conducted by the agency. In the 
absence of a waiver, a contested 
case under this Article shall be 
presided ccr by the chief 
hearing officer of the Office of 
Administrative Hearings or a 
hearing officer assigned by him. 
In assigning hearing officers, 
the chief hearing officer shall 
attempt to use personnel having 
expertise in the subject to be 
dealt with in the hearing. 

A local government 
employee, applicant for 
employment, or former employee 
to whom Chapter 126 of the 
General Statutes applies may 
commence a contested case under 
this Article in the same manner 
as any other petitioner. The 
case shall be conducted in the 
Office of Administrative 
Hearings in the same manner as 
other contested cases under this 
Article, except that the 
decision of the hearing officer 
shali be advisory only and not 
binding on the local appointing 
authority, unless (1) the 
hearing officer decides that the 



employee , 



applicant , 



or former 



employee lias been subjected to 
discrimination prohibited by 
Article 6 of Chapter 126 of the 
General Statutes or (2) 
applicable federal standards 
require a binding decision. In 
these two cases, the hearing 
officer's decision shall be 
final . 

(al) The parties in a 
contested case in the Dcpcirtmcnt 
of Human Resources shall be 
given an opportunity for a 
hearing without undue delay. 

(b) The parties shall be 
given notice not less than 15 
clays before the hearing by the 
Office of Admin is trat ive 
Hearings or the agency, which 
notice shall include: 



NORTH CAROLINA REGISTER 



(1) A statement of the 
date, hour, place, and nature of 
the hearing; 

(2) A reference to the 
particular sections of the 
statutes and rules involved; 

(3) A short and plain 
statement of the factual 
allegations; and 



(4) If the agency is the 
Department of human Resources, a 
statement of who will conduct 
the hearing and that the party 
may request a hearing officer in 
the Office of Administrative 
Hearings as provided in G.S. 
150B-32. 

(c) Notice shall be given 
personally or by certified mail. 
If given by certified mail, it 
shall be deemed to have been 
given on the delivery date 
appearing on the return receipt. 
If giving of notice cannot be 
accomplished either personally 

notice 
in the 
, 1A-1, 



mail 



given 



in 



G.S 



person may 

a party by 

intervene in 



or by certified 
shall then be 
manner provided 
Rule 4( jl ) , 

(d) Any 
petition to become 
filing a motion to 
the manner provided in G.S. 
1A-1, Rule 24. In addition, any 
person interested in a contested 
case may intervene and 
participate in that proceeding 
to the extent deemed appropriate 
by the hearing officer. 

(e) All hearings under 
this Chapter shall be open to 
the public. Hearings shall be 
conducted in an impartial 
manner. Hearings shall be 

according 

set out 
except to the extent 
the particulars that 



conducted 
procedures 
Article , 
and in 



to 

in 



the 
this 



specific hearing procedures and 
time standards are governed by 
another statute. 

1 50B-24 . Venue of 

heari ng . --(a) The hearing of 
a contested case shall be 
conducted : 

( 1 ) In the county in this 
State in which any person whose 
property or rights are the 
subject matter of the hearing 
maintains his residence; 

(2) In the county where 
the agency maintains its 
principal office if the property 
or rights that are the subject 
matter of the hearing do not 
affect any person or if the 
subject matter of the hearing is 

or r i tj h t s of 
more than one 



the property 
residents of 
count v ; or 

(3) 
determined 
hearing 
discre I ion 



In any county 

by the agency or 

officer in his 

to promote the ends 



of justice or better serve the 
convenience of witnesses. 

(b) Any person whose 
property or rights are the 
subject matter of the hearing 
waives his objection to venue by 
proccedinq in the hearing. 

150B-25. 
he a ring; a n swer . 
party fails to 
contested case 
service of notice, 
adjournment or continuance is 
granted, the agency or hearing 
may proceed with the 
in the absence of the 



Con duct of 

— (a) If a 

appear in a 

after proper 

and if no 



on 



issues 



of 



party may 
any witness, 

author of a 



officer 
hearing 

party . 

(b) A party who has been 
served with a notice of hearing 
may file a written response, and 
a copy must be mailed to all 
other parties not less than 10 
days before the date set for 
hearing. If the agency is the 
Department of Human Resources, 
the response may include a 
request for a hearing officer in 
the Office of Administrative 
Hearings as provided in G.S. 
150B-32. 

(c) The parties shall be 
given an opportunity to present 
arguments on issuer, of lav; and 
policy and an opportunity 
present evidence 
fact . 

(d) A 
cross-examine 
including the 
document prepared by, on behalf 
of, or for use of the agency and 
offered in evidence. Any party 
may submit rebuttal evidence. 

150B-26. Consolidation. 
— When contested cases involving 
a common question of law or fact 
or multiple proceedings 
involving the same or related 
parties are pending, the chief 
hearing officer of the Office of 
Administrative Hearings may 
order a joint hearing of any 
matters at issue in the cases, 
order the cases consolidated, or 
malte other orders to reduce 
costs or delay in the 
proceedings. If one or more, 
but not all parties in a 
consolidated contested case in 
the Department of Human 
Resources involving multiple 
aggrieved persons requests a 
hearing officer in the Office of 
Administrative Hearings as 
provided in G.S. 150B-32, the 

officer in the 

Administrat ive 

decide whether to 

reques t at tcr 

the parties in 

cases 



chief hearing 
Office of 
Hearings shall 
grant the 
consulting with 



all the 
involved . 

— After 



con tested 



1 5 B - 2 7 . St ib poena, 
the commencement of a 



10 



NORTH CAROLINA REGISTER 



contested case, the agency or 
hearing officer may issue 
subpoenas upon his own motion or 
upon a written request . When a 
written request for a subpoena 
lias been made, the agency or 
hearing officer shall issue the 
requested subpoenas forthwith 
requiring the attendance and 
testimony of witnesses and the 
production of evidence including 
books, records, correspondence, 
and documents in their 
possession or under their 
control. Upon written request, 
the agency or hearing officer 
shall revoke a subpoena if, upon 
a hearing, he finds that the 
evidence the production of which 
is required does not relate to a 
matter in issue, or if the 
subpoena does not describe with 
sufficient particularity the 
evidence the production of which 
is required, or if for any other 
reason sufficient in law the 
subpoena is invalid. Witness 
fees shall be paid by the party 
requesting the subpoena to 
subpoenaed witnesses in 
accordance with G.S. 7A-314. 
However, State officials or 
employees who are subpoenaed 
shall not be entitled to witness 
fees, but they shall receive 
their normal salary and they 
shall not be required to take 
any annual leave for the witness 
days. Travel expenses of State 
officials or employees who are 
subpoenaed shall be reimbursed 
as provided in G.S. 138-6. 

1 50B-23 . Depositio ns and 
di scovery . --(a) A deposition 
may be used in lieu of other 
evidence when taken in 
compliance with the Rules of 
Civil Procedure, G.S. 1A-1. 
Parties in contested cases may 
engage in discovery pursuant to 
the provisions of the Rules of 
Civil Procedure, G.S. 1A-1. 

(b) On a request for 
identifiable agency records, 
with respect to material facts 
involved in a contested case, 
except records related solely to 
the internal procedures of the 
agency or which are exempt from 
disclosure by law, an agency 
shall promptly make the records 
available to a party. 

1 50B-29 . Rules of 

evidence . 



(a) 



Ln 



all 



contested cases, irrelevant, 
immaterial and unduly 
repetitious evidence shall be 
excluded. Except as otherwise 
provided, the rules of evidence 
as applied in the trial division 
of the General Court of Justice 
shall be followed; but, when 
evidence is not reasonably 
available under the rules to 



show relevant facts, then the 
most reliable and substantial 
evidence available shall be 
admitted. It shall not be 
necessary for a party or his 
attorney to ob^, . ct at the 
hearing to evidence in order to 
preserve the right to object to 
its consideration by the agency 
or hearing officer in reaching 
his decision, or by the court on 
judicial review. 

(b) Evidence in a 
contested case, including 
records and documents, shall be 
offered and made a part of the 
record. Factual information or 
evidence not made a part of the 
record shall not be considered 
in the determination of the 
case, except as permitted under 
G.S. 1502-30. Documentary 
evidence may be received in the 
form of a copy or excerpt or may 
be incorporated by reference, if 
the materials so incorporated 
are available for examination by 
the parties. Upon timely 
request, a party shall bo given 
an opportunity to compare the 
copy with the original if 
available . 

150B-30. O fficia l 
notice . --Official notice may 
be taken of all facts of which 
judicial notice may be taken and 
of other facts within the 
specialized knowledge of the 
agency. The noticed fact and 
its source shall be stated and 
made known to affected parties 
at the earliest practicable 
time, and any party shall on 
timely request bo afforded an 
opportunity to dispute the 
noticed fact through submission 
of evidence and argument. 

1 5 B - 3 1 . Stipulat i ons . 
— (a) Tiie parties in a 
contested case may, by a 
stipulation in writing filed 
with the agency or hearing 
officer, agree upon any fact 
involved in the controversy, 
which stipulation shall be used 
as evidence at the hearing and 
be binding on the parties 
thereto. Parties should agree 
upon facts when practicable. 

Cb) Except as otherwise 
provided by lav/, disposition may 
be made of a contested case by 
stipulation, agreed settlement, 
consc. order, waiver, default, 
or other method agreed upon by 
the part ies . 

1 5 B - 3 2 . Designation o f 
hearing offi cer. --(a) The 
chief hearing officer of the 
Office of Administrative 
Hearings shall assign himself or 
a hearing officer in the Office 
of Administrative Hearings to 
preside as hearing officer in 



NORTH CAROLINA REGISTER 



1 1 



each contested case. If a party- 
waives the right to have a case 
conducted in the Office of 
Administrative Hearings in the 
petition to commence the case, 
an agency, one or more members 
of the agency, a person or group 
of persons designated by 
statute, or one or more hearing 
officers designated and 
authorized by the agency to 
conduct contested cases. 

( a I ) A ; arty in a 
contested case in the Department 
of Human Resources who has been 
served with a notice of hearing 
may request in a response filed 
pursuant to G.S. 1503-25(b) that 
the contested case be conducted 
by a hearing officer in the 
Office of Administrative 
Hearings. The agency shall 
forthwith request the chief 
hearing officer in the Office of 
Administrative Hearings to 
assign himself or another 
hearing officer to conduct the 
case, and the chief hearing 
officer shall make the 
assignment. In assigning 
hearing officers, the chief 
hearing officer shall attempt to 
use personnel having expertise 
in the subject to be dealt with 
in the hearing. 

A party waives the right to 
request a hearing officer in the 
Office of Administrative 
Hearings if the response is not 
filed at least 10 days before 
the date set for hearing, 

(b) On the filing in good 
faith by a party of a timely and 
sufficient affidavit of personal 
bias or disqualification of a 
hearing officer, the agency 
shall determine the matter as a 
part of the record in the case, 
and this determination shall be 
subject to judicial review at 
the conclusion of the 
proceeding . 

(c) When a hearing officer 
is disqualified or it is 
impracticable for him to 
continue the hearing. another 
hearing officer shall be 
assigned to continue with the 

it is si 
prejudice 
result , 
hearing 



that 



lown 

to any 
in which 
shall be 
dismissed 



case unless 

substantial 

party will 

event a new 

held or the case 

without prejudice. 

1 5 B - 3 3 . Powers of 

hen ring offi cer . - - ( a J A 

hearing officer shall stay any 
contested case under this 
Article on motion of an agency 
which is a party to the 
contested case, if the agency 
shows by supporting affidavits 
that it is engaged in other 
litigation or administrative 



proceedings. by whatever name 
called, with or before a federal 
agency, and this other 
litigation or administrative 
proceedings will determine the 
position, in whole or in part, 
of the agency in the contested 
case. At the conclusion of the 
other litigation or 
administrative proceedings, the 
contested case shall proceed and 
be determined as expeditiously 
as poss ible . 

Cb) A hearing officer may: 

( 1 ) Administer oaths and 
affirmations ; 

(2) Sign and issue 
subpoenas in the name of the 
agency or the Office of 
Administrative Hearings, as 
applicable, requiring attendance 
and giving of testimony by 
witnesses and the production of 
books, papers, and other 
documentary evidence; 

(3) Provide for the talcing 
of testimony by deposition; 

(4) Regulate the course of 
the hearings, including 
discovery, set the time and 
place for continued hearings, 
and fix the time for filing of 
briefs and other documents; 

(5) Direct the parties to 
appear and confer to consider 
simplification of the issues by 
consent of the parties; 

(6) Stay the contested 
action by the agency pending the 
outcome of the case, upon such 
terms as he deems proper, and 
subject to the provisions of 
G.S. 1A-1, Rule 65; 

(7) Determine whether the 
hearing shall be recorded by a 
stenographer or by an electronic 
device ; and 

18) Apply to any judge of 
the Superior Court resident in 
the district or presiding at a 
term of court in the county 
where a hearing is pending for 
an order to show cause why any 
person should not be held in 
contempt, and the Court shall 
have the power to impose 
punishment as for contempt for 
acts which would constitute 
direct or indirect contempt if 
the acts occurred in an action 
pending in superior court. 

(9) Determine that a rule 
as applied in a particular case 
is void because (1) it is not 
within the statutory authority 
of the agency. (2) is not clear 
and unambiguous to persons it is 
intended to direct. guide, or 
assist, or (3) is not reasonably 
necessary to enable the 
administrative agency to perform 
a function assigned to it by 
statute or to enable or 
facilitate the implementation of 



12 



NORTH CAROLINA REGISTER 



program or policy in aid of 



150B-34. 



Proposal for 



dec is ion; recommen d ed decision. 
— (a) In a contested case 
conducted by a hearing officer 
other than the agency officials 
make the final 
the hearing officer 



Make a proposal for 

that contains his 

of fact and conclusions 

and proposed decision, 

order, or report; 

Deliver a copy of the 

for decision to each 



who will 

decision, 

shall: 

(1 ) 
decision 
findings 
of 1 aw 
opinion, 

(2) 
proposal 
party; and 

(3) Give each party an 
opportunity to file exceptions 
and proposed findings of fact 
and to present written arguments 
to him. 

(b) After considering any 
exceptions, proposed findings of 
fact, and written arguments of 
the parties, the hearing officer 
shall make a recommended 
decision that contains findings 
and conclusions of law 
recommended decision, 
order, or report. He 
the recommended 
official record 



of fact 
and a 
opinion . 
shall include 
decision in the 



to G.S. 

forward a 

record to 

ex parte 



prepared pursuant 
150B-37(a) and shall 
copy of the official 
the agencv . 

150B-35. No 

commun icat ion . ex ceptions . 

--Unless required for 
disposition of an ex p a rte 

matter authorized by law. a 
member or employee of an agency 
assigned to make a decision or 
to make findings of fact and 
conclusions of lav/ in a 
contested case or a hearing 
officer shall not communicate, 
directly or indirectly, in 
connection with any issue of 
fact, or question of lav/, with 
any person or party or his 
representative, except on notice 
and opportunity 
to participate. 
150B-36. 

--A final decision or order in a 
contested case shall be made by 
the agency in writing after 
review of the officii record as 
defined in G.S. 150B-37(a) and 
shall include findings of fact 
and conclusions of lav/. If the 
agency docs not adopt the 
hearing officer's recommended 
decision as its final decision 
in a contested case conducted by 
a hearing officer, the agency 
shall include in its decision or 
order the specific reasons why 
the hearing officer's 
recommended decision is not 
adopted. A decision or order 



for all parties 
Final decision . 



the 

the 

copy 

his 



shall not be made except upon 
consideration of the record as a 
whole or such portion as may be 
cited by any party to the 
proceeding and shall be 
supported by substantial 
evidence admissible under G.S. 
150B-2S(a), 150B-3C, or 1503-31. 
A copy of the decision or order 
shall be served upon each party 
personally or by certified mail 
addressed to the party at 
latest addx'ess given by 
party to the agency, and a 
shall be furnished to 
attorney of record. 

150B-37. Of ficia l 
reco rd . --(a) The agency or 
hearing officer who conducts the 
hearing in a contested case 
shall prepare an official record 
of the hearing which shall 
include : 

(1) Notices, pleadings, 
motions, and intermediate 
rulings ; 

(2) Questions and offers 
of proof, objections, and 
rulings thereon; 

(3) Evidence presented; 

(4) Natters officially 
noticed, except matters so 
obvious that a statement of them 
would serve no useful purpose; 

(5) The hearing officer's 
proposal for decision and 
exceptions and proposed findings 
of f ac t ; and 

(6) The hearing officer's 
recommended decision, opinion, 
order, or report. 

(b) Proceedings at which 



oral evidence is presented shall 
be recorded, but need not bo 
transcribed unless requested by 
a party. Each party shall bear 
the cost of the transcript or 
part thereof or copy of said 
transcript or part thereof which 
said party requests, and said 
transcript or part thereof shall 
be added to the of^cial record 
as an exhibit . 

Article 3 A . 
Other Adminis trat ive Hearings. 
1503-38 . S cope ; hen rjj. ng 

re quired ; n otice; venue . — (a) 

The provisions of 



shall apply 
agencies : 

(1 ) 
agencies ; 

(2) 
Commission . 
Banks , the 
Division 
Commerce 
Divis ion 
Commerce 

(3) 
Insurance 
o 



to 



this Article 
the following 



Occupational licensing 



o. 



The State Banking 

the Commissioner of 

Savings and Loan 

the Department of 

and the Credit Union 

of the Department of 

and 

The Department of 
and the Commissioner 
Insurance . 

(b) Prior to any agency 
action in a contested case, the 



NORTH CAROLINA REGISTER 



13 



agency shall give the parties in 
the case an opportunity for a 
hearing without undue delay and 
notice not less than 15 days 
before the hearing. Notice to 
the parties shall include: 

( 1 ) A statement of the 
date. hour, place, and nature of 
the lie a ring; 

(2) A reference to the 
particular sections of the 
statutes and rules involved; and 

(3> A short and plain 
statement of the facts alleged. 

(c) Notice shall be given 
personally or by certified mail. 
If given by certified mail, 
notice shall be deemed to have 
been given on the delivery date 
appearing on the return receipt. 
If notice cannot be given 
personally or by certified mail, 
then notice shall be given in 
the manner provided in G.S. 
1A-1 , Rule 4 ( j 1 ) . 

(d) A party who has been 
served with a notice of hearing 
may file a written response with 
the agency. If a written 
response is filed, a copy of the 
response must be mailed to all 
other parties not less than 10 
days before the date set for the 
hearing . 

(e) All hearings conducted 
under this Article shall be open 
to the public. A hearing 
conducted by the agency shall be 
held in the county where the 
agency maintains its principal 
office. A hearing conducted for 
the agency by a hearing officer 
requested under G.S. 150B-40 
shall be held in a county in 
this State where any person 
whose property or rights are the 
subject matter of the hearing 
resides. If a different venue 
would promote the ends of 
justice or better serve the 
convenience of witnesses. the 
agency or the hearing officer 
may designate another county, A 
person whose property or rights 
are the subject natter of the 
hearing waives his objection to 
venue if he proceeds in the 
hearing . 

(f) Any person may 
petition to become a party by 
filing with the agency or 
hearing officer a motion to 
intervene in the manner provided 
by G.S. 1A-1, Rule 24. In 
addition, any person interested 
in a contested case under this 
Article may intervene and 
participate to the extent deemed 
appx'opriate by the agency 
hearing officer. 

(gJ When contested cases 
involving a common question of 
law or fact or multiple 
proceedings involving the same 



or related parties are pending 
before an agency, the agency may 
order a joint hearing of any 
matters at issue in the cases, 
order the cases consolidated, or 
make other orders to reduce 
costs or delay in the 
proceedings . 

(h) Every agency shall 
adopt rules governing the 
conduct of hearings that are 
consistent with the provisions 
of this Article . 

1503-39. Depositions; 
d iscov e ry: sMln;oenas . — ( a ) A 
deposition may be used in lieu 
of other evidence when taken in 
comnliar.ee with the Rules of 
Civil Procedure, G.S. 1A-1. 
Parties in a contested case may 
engage in discovery pursuant to 
the provisions of the Rules of 
Civil Procedure, G.S. 1A-1. 

(h) Upon a request for an 



ident if iable 



agency 



: o r d 



involving a material fact in a 
contested case, the agency shall 
promptly provide the record to a 
party, unless the record relates 
solely to the agency's internal 
procedures or is exempt from 
disclosure by law. 

(c) An agency may issue 
subpoenas in preparation for, or 
in the conduct of, a contested 
case upon its own motion. If a 
written request is made by a 
party in a contested case, an 
agency shall issue subpoenas 
forthwith requiring the 
attendance and testimony of 
witnesses and the production of 
evidence including books, 
record.", correspondence. and 
documents in their possession or 



undo: 



their control. 



Upon 

written request, the agency 
shall revoke a subpoena if, upon 
a hearing, the agency finds that 
the evidence, the production of 
which is required. does not 
relate to a matter in issue, or 
if the subpoena docs not 
describe with sufficient 
particularity the evidence the 
production of which is required, 
or if for any other reason 
sufficient in law the subpoena 
is invalid. Witness fees shall 
be paid by the party requesting 
the subpoena to subpoenaed 
witnesses in accordance with 
G.S. 7A-314. However. State 
officials or employees who are 
subpoenaed shall not be entitled 
to any witness fees, but they 
shall receive their normal 
salary and they shall not be 
required to take any annual 
leave for the witness days. 
Travel expenses of Slate 
officials or crployees who are 
subpoenaed shall be reimbursed 
as provided in G.S. 133-6. 



14 



NORTH CAROLINA REGISTER 



hea r mg; 
p arte 



150B-40. 
pres iding 



Conduct 
officer ; 



of 



COW munic a t io n . — ( a ) 
Hearings shall be conducted in a 
fair and impartial manner. At 
the hearing, the agency and the 
parties shall be given an 
opportunity to present evidence 
on issues of fact, examine and 
cross-examine witnesses, 

including the author of a 
document prepared by, on behalf 
of or for the use of the agency 
and offered into evidence, 
submit rebuttal evidence, and 
present arguments on issues of 
law or policy. 

If a party fails to appear 
in a contested case after lie has 
been given proper notice, the 
agency may continue the hearing 
or proceed with the hearing and 
make its decision in the absence 
of the party. 

(b) Except as provided 
under subsection (e) of this 
section, hearings under this 
Article shall be conducted by a 
majority of the agency. An 
agency shall designate one or 
more of its members to preside 
at the hearing. If a party 
files in good faith a timely and 
sufficient affidavit of the 
personal bias or other reason 
for disqualification of any 
member of the agency, the agency 
shall determine the matter as a 
part of the record in the case, 
and its determination shall be 
subject to judicial review at 
the conclusion of the 
proceeding. If a presiding 
officer is disqualified or it is 
impracticable for him to 
continue the hearing, another 
presiding officer shall be 
assigned to continue with the 
case, except thai: if assignment 
of a new presiding officer will 
cause substantial prejudice to 
any party, a new hearing shall 
be held or the case dismissed 
without prejudice. 

(c) The presiding officer 
may : 

(1) Administer oaths and 
af f irmat ions ; 

(2) Sign and issue 
subpoenas in the name of the 
agency, requiring attendance and 
giving of testimony by witnesses 
and the production of books, 
papers, and other documentary 
evidence ; 

(3) Provide for the taking 
of testimony by deposition; 

(4) Regulate the course of 
the hearings, sot the time and 
place for continued hearings, 
and fix the time for filing of 
briefs and other documents; 

(5) Direct the parties to 
appear and confer to consider 



simplification of the issues by 
consent of the parties; and 

(6) Apply to any judge of 
the superior court resident in 
the district or presiding at a 
term of court in the county 
where a hearing is pending for 
an order to show cause why any 
person should not be held in 
contempt of the agency and its 
proces:; . and the court shall 
have tne power to impose 
punishment as for contempt for 
acts which would constitute 
direct or in" ; rect contempt if 
the acts occurred in an action 
pending in superior court. 

Cd) Unless required for 
dispositon of an ex parte matter 
authorized by law, a member of 
an agency assigned to make a 
decision or to make findings of 
fact and conclusions of lav; in a 
contested case under this 
Article shall not communicate, 
directly or indirectly, in 
connection with any issue of 
fact or question of lav/, with 
any person or party or his 
representative, except on notice 
and opportunity for all parties 
to participate. This 

prohibition begins at the time 
of the notice of hearing. An 
agency member may communicate 
with other members of the agency 
and may have the aid and advice 
of the agency staff other than 
the staff which has been or is 
engaged in investigating or 
prosecuting functions in 
connection with the case under 
consideration or a factually 
related case. This section does 
not apply to an agency employee 
or party representative with 
professional training in 
accounting, actuarial science, 
economics or financial analys .; 
insofar as the case involves 
financial practices or 
condit ions . 

(e) When a majority of an 
agency is unable or elects not 
to hear a contested case, the 
agency shall apply to the chief 
hearing officer of the Office of 
Administrative Hearings for the 
designation of a hearing officer 
to preside at the hearing of a 
contested case under this 
Article. Upon receipt of the 
application, the chief hearing 
officer shall, without undue 
delay, assign a hearing officer 
to hear the case. 

The provisions of this 
Article, rather than the 
provisions of Article 3. shall 
govern a contested case in which 
the agency requests a hearing 
officer from the Office of 
Administrative Hearings. 



NORTH CAROLINA REGISTER 



15 



The hearing officer 
assigned to hear a contested 
case under this Article shall 
sit in place of the agency and 
shall have the authority of the 
presiding officer in a contested 
case under tiiis Article. The 
hearing officer shall make a 
proposal for decision. which 
shall contain proposed findings 
of fact and proposed conclusions 
of law. 

A hearing officer shall 
stay any contested case under 
this Article on motion of an 
agency which is a party to the 
contested case . if the agency 
shows by supporting affidavits 
that it is engaged in other 
litigation or administrative 
proceedings. by whatever name 
called, with or before a federal 
agency. and this other 
litigation or administrative 
proceedings will determine the 
position. in whole or in part, 
of the agency in the contested 
case. At the conclusion of the 
other litigation or 
administrative proceedings, the 
contested case shall proceed and 
be determined as expeditiously 
as possible. 

The agency may make 
final decision only after 
hearing officer's proposal 
decision is served on 
parties, and an opportunity is 
given to each party to file 
exceptions and proposed findings 
of fact and to present oral and 
written arguments to the agency. 
1 5 B -4 1 . Evi d ence: 
st i p u lat ion; 
--(a) 



its 
the 
for 
the 



"f icial no t ice 



In all contested cases, 
irrelevant, immaterial, and 
unduly repetitious evidence 
shall be excluded. Except as 
otherwise provided, the rules of 
(. r idcncc as applied in the trial 
division of the General Court of 
Justice shall be followed; but, 
when evidence is not reasonably 
available under such rules to 
show relevant facts, they may be 
shown by the most reliable and 
substantial evidence available. 
It shall not be necessary for a 
party or his attorney to object 
to evidence at the hearing in 
order to preserve the rigiit to 
object to its consideration by 
the agency in reaching its 
decision, or by the court of 
judicial review. 

(b) Evidence in a 
contested case, including 
records and documents shall be 
made a part of the 
Other factual 
or evidence shall 
considered in 
determination of the case, 
except as permitted under G.S. 



offered and 
record . 
information 
not be 



150B-30. Documentary evidence 
may be received in the form of a 
copy or excerpt or may be 
incorporated by reference, if 
the materials so incorporated 
are available for examination by 
the parties. Upon timely 
request, a party shall be given 
an opportunity to compare the 
copy with the original if 
available . 

(c) 
contested 
Article by 
writing filed 



concent 
fault, or other 
upon by the 



The parties in a 
case under this 
a stipulation in 
with the agency 
may agree upon any fact involved 
in the controversy, which 
stipulation shall be used as 
evidence at the hearing and be 
binding on the parties thereto. 
Parties should agree upon facts 
when practicable. Except as 
otherwise provided by lav;, 
disposition may be made of a 
contested case by stipulation, 
agreed settlement 
order, waiver, de 
method agreed 
parties . 

Ul ) Official notice may be 
taken of all facts of which 
judicial notice may be taken and 
of other facts within the 
specialized knowledge of the 
agency. The noticed fact and 
its source shall be stated and 
made known to affected parties 
at the earliest practicable 
time, and any party shall on 
timely request be afforded an 
opportunity to dispute the 
noticed fact through submission 
of evidence and argument. An 
agency may use its experience, 
technical competence, and 
specialised Jcnowledge in the 
evaluation of evidence presented 
to it 



150B-42. 



Find 



dec i s ion ; 
— ( 



: ficial 



ag enc y 

record. 

che 



) After compliance with 
provisions of G.S. 150B-40(e), 
if applicable, and review of the 
official record, as defined in 
subsection (b) of this section, 
an agency shall make a written 
final decision or order in a 
contested case. The decision or 
order shall include findings of 
fact and conclusions of law. 
Findings of fact shall he based 
exclusively on the evidence and 
on matters officially noticed. 
Findings of fact, if set forth 
in statutory language, shall be 
accompanied by a concise and 
explicit statement of the 
underlying facts supporting 
them . A decision or order shall 
not be made except upon 
consideration of the record as a 
whole or such portion thereof as 
may be cited by any party to the 
proceeding and shall be 



16 



NORTH CAROLINA REGISTER 



supported by substantial 
evidence admissible under G.S. 
15013-41 . A copy of tlie decision 
or order sball be served upon 
each party personally or by 
certified mail addressed to the 
party at the latest address 
given by the party Lo the agency 
and a copy shall be furnished to 
his attorney of record. 

(b) An agency shall 
prepare an official record of a 
hearing that shall include: 

(1) Notices, pleadings, 
motions, and intermediate 
rulings ; 

(2) Questions and offers 
of proof, objections, and 
rulings thereon; 

(3) Evidence presented; 

(4) Matters officially 
noticed, except matters so 
obvious that a statement of them 
would serve no useful purpose; 

(5) Proposed findings and 
exceptions; and 

(6) Any decision, opinion, 
order, or report by the officer 
presiding at the hearing and by 
the agency. 

(c) Proceedings at which 
oral evidence is presented shall 
be recorded, but need not be 
transcribed unless requested by 
a party. Each party shall bear 
the cost of the transcript or 
part therecf or copy of said 
transcript or part thereof which 
said party requests. 

Art icle 4 . 
Judicial Review. 

150E-43. Right to 
.judicial review. --Any person 
who is aggrieved by the final 
decision in a contested case, 
and who lias exhausted all 
administrative remedies made 
available to him by statute or 
agency rule, is entitled to 
judicial review of the decision 
under this Article, unless 
adequate procedure for judicial 
review is provided by another 
statute, in which case the 
review shall be under such other 
statute. Nothing 
Chapter shall prevent 
from invoicing any 
remedy available to 
the law to tost the 



court order compelling action by 
the agency or hearing officer. 

Manner of 



tine for 



in this 

any person 

judicial 

him under 

validity of 



any administrative action not 
made reviewable under this 
Art icle . 

1 50B-44 . Right to 

j u d i c i al i n t erv en t ion whe n 

decisi on unreasonably delayed ■ 

--Unreasonable delay on the part 
of any agency or hearing officer 
in talcing any required action 
shall be justification for any 
person whose rights, duties, or 
privileges are adversely 
affected by such delay to seek a 



fili n g 

— In order to 

review of a 

under this 

>1f 



15013- 

see king review 

pet it ion ; w n Iver 
obtain judicial 
final decision 

Chapter, the party seeking 
review must file a petition in 
the Superior Court of Wake 
County or in the superior court 
of the county where the 
petitioner resides. The 
petition may be filed at any 
time after final decision but 
must be filed not later than 30 
days after a written copy of the 
decision is served upon the 
party seeking the review by 
personal service or by certified 
mail. Failure to file a 
petition within the time stated 
shall operate as a waiver of the 
right of such party to review 
under this Chapter, except that, 
for good cause shown, a judge of 
the superior court resident in 
the district or holding court in 
the county where venue is proper 
may issue an order permitting a 
review of the agency decision 
under this Chapter 
notwithstanding such waiver. 

I 50B-46 . Contents o f 
petiti o n; c op ies se r ved on a 11 

p_a r tic s j in fcervenh ion . --The 

petition shall explicitly state 
what exceptions are taken to the 
decision or procedure and 'what 
petitioner seeks. 



relief the 
Within 10 
petition is 
court . the 
review shall 



days after the 
filed with the 
party seeking the 
serve copies of the 
petition by personal service or 
by certified mail upon all who 
were parties of record to the 
adininis tra tive proceedings . 
Names and addresses of such 
parties shall be furnished ■! 
the petitioner by the agency 
upon request . Any party to the 
administrative proceeding may 
become a party to the review 
proceedings by notifying the 
court within 10 days after 
receipt of the copy of the 
petition . 

person aggrieved may 

to become a party by 

motion to intervene as 

in G.S. 1A-1 . Rule 24. 

1 50B-47 . Recor ds fi led 

c lerk of su pcri or con r t : 

cos: ts . 



Any 
pe t it ion 
filing a 
provided 

with 

content ; o f recor d 

--Within 30 days after receipt 
of the copy of the petition for 
review, or within such 
additional time as the court may 
allow, the agency shall transmit 
to the reviewing court the 
original or a certified copy of 
the official record of the 
hearing in the contested case 



NORTH CAROLINA REGISTER 



17 



under 

permi: 



review. With the 
;ion of the court, the 
record may be shortened by 
stipulation of all parties to 
the review proceedings . Any 
party unreasonably refusing to 
stipulate to limit the record 
may be taxed by the court for 
such additional costs as may be 
occasioned by the refusal. The 
court may require or permit 
subsequent corrections or 
additions to the record when 
deemed desirable. 

150B-48. Stay of 

decision. --At any time before 
or during the review proceeding, 
the person aggrieved may apply 
to the reviewing court for an 
order staying the operation of 
the administrative decision 
pending the outcome of the 
review. The court may grant or 
deny the stay in its discretion 
upon such terns as it deems 
proper and subject to the 
provisions of G.S. 1A-1, Rule 
65. 

150B-49. New evidence., 
--In a review proceeding under 
this Article, any party may 
present evidence not contained 
in the record that is not 
repetitive . 

1503-50. 
without jury . 



R 



eview is v 



cou rt 
of 



agency 
Chapter 
the court 

review; 



--The review 
decisions under this 
shall be conducted by 

without a jury. 

150B-51 . Scope of 

power of 



court 



i ng o f 



.h i 

--Based on 

and the evidence 

to the court, the 

affirm, reverse, or 

decision or remand 

to the agency for 



Anne n l to 
obtai n! nq 
Any 



UlSPQf 

the record 
presented 
court may 
modify the 
the case 
further proceeding 
150B-52. 

a p p ell ate di vis ion ; pj 

s t a y of c o i trt ' d ec ! s ion . 
party to the review px m oceediny: 
including the agency, may appeal 
to the appellate di.vision from 
the final judgment of the 
superior court under rules of 
procedure applicable in other 
civil cases. The appealing 
party may apply to the superior 
court for a stay of its final 
determination, or a stay of the 
administrat ive decision, 

whichever shall be appropriate, 
pending the outcome of the 
appeal to the appellate 
division . 

Art icle 5 . 

Publication of Administrative 

Rules . 

1 5 B -5 8 . S hort J- i tle . 

--Tli is Article may be cited as 

'The Registration of State 

Administrative Rules Act'. 



150B-59. Filing of ru les 
and exec utiv e orders. — ( a ) 
Rules adopted by an agency and 
executive orders of the Governor 
shall be filed with the chief 
hearing officer of the Office of 
Administrative Roarings. No 
rule, except temporary rules 
adopted under the provisions of 
G.S. 1503-13 or curative rules 
adopted pursuant to G.S. 
143B-29.2(d), shall beccne 
effective earlier than the first 
day of the second calendar month 
after that filing. 

(b) The acceptance for 
filing of a rule by the chief 
hearing officer, by his notation 
on its face, shall constitute 

prima fac ie evidence of 

compliance with this Article. 

(c) Rules adopted by an 
agency subject to the provisions 
of Article 2 of this Chapter in 
effect on January 1, 1936, that 
conflict with or violate the 
provisions of G.S. 150B-9(c) are 
repealed. Rules adopted by an 
agency subject to the provisions 
of Article 2 of this Chapter in 
effect on January 1, 1936, that 
do not conflict with or violate 
the provisions of G.S. 1503-9(c) 
shall remain in effect until 
June 30, 1936. These rules are 
repealed effective July 1, 1926, 
unless approved by the General 
Assembly on or before June 30. 
1986. The approval of rules by 
the General Assembly shall not 
be deemed to enact the approved 
rules or to prohibit their 
subsequent amendment, repeal or 
recodification under the 
provisions of this Chapter. 
Rules adopted on or after 
January 1 , 1986, shall become 
effective as provided in this 
Chapter . 

1503-60. For m of rul es; 
respo nsi biliti es o 
assista nce to ngen ci.es. — ( a ) 
In order to be acceptable 
filing, the rule must: 

( 1 ) Cite the statute 
other authority pursuant 
which the rule is adopted; 

(2) Bear a certification 
by the agency of its adoption; 

(3) Cite any i^'ior rule or 
rules of the agency or its 
predecessor in authority which 
it rescinds, amends; supersedes, 
or supplements; 

(4) Be in the physical 
form specified by the chief 
hearing officer of the Office of 
Administrative hearings; and 

(5) Bear a notation by the 
Governor 'hat the rule has been 
submitted in accordance with 
G.S. 143A-55.3(c). This 
subdivision does not apply to 
rules adopted by the Industrial 



a gcnc3. es 
-(ai 
for 

or 
to 



18 



NORTH CAROLINA REGISTER 



Commission, or by the Utilities 
Commission, or to rules adopted 
by the Department of 
Transportation relating to 
traffic sign ordinances or road 
and bridge weight limits. 

(b) Each agency shall 
designate one or ir.ore 
administrative procedure 
coordinators whose duties shall 
be to oversee all departmental 
functions required by this 
Chapter. The coordinator's 
duties shall include providing 
notice of public hearings; 
serving as liaison between the 
agency and the Office of 
Administrative Hearings, the 
Administrative Rules Review 
Commission and the public; and 
coordinating access to age, y 
rules . 

(c) The chief hearing 
officer of the Office of 
Administrative Hearings shall: 

( 1 ) Maintain an agency 
rule-drafting section in the 
Office of Administrative 
Hearings to draft or aid in the 
drafting of rules or amendments 
to rules for any agency; and 

(2) Prepare and publish an 
agency rule-drafting guide which 
sets out the form and method for 
drafting rules and amendments to 
rules, and to which all rules 
shall comply. 

150B-61. Auth o rity to 
revis e for m. --(a) The chief 
hearing officer of the Office of 
Administrative Hearings shall 
have the authority, following 
accepta.-.ce of a rule for filing, 
to revise the form of the rule 
as f ollows : 

( 1 ) To rearrange the order 
of rules, Chapters, Subchapters, 
Articles, sections, paragraphs, 
and other divisions or 
subdivis ions ; 

(2) To provide or revise 
titles or catch lines; 

(3) To rcletter or 
renumber the rules and various 
subdivisions in accordance with 
a uniform system; 

(4) To rearrange 
definitions and lists; and 

(5 J To make other changes 
in arrangement or in form that 
do not alter the substance of 
the rule and that are necessary 
or desirable for an accurate, 
clear, and orderly arrangement 
of the rules . 

Revision of form by the 
chief hearing officer shall not 
alter the effective date of a 
rule, nor shall revision require 
the agency to rcadopt or to 
refile the rule. No later than 
the close of the fifth working 
day after the filing of a rule 
by an agency, the chief hearing 



officer shall return to the 
agency that filed the rule a 
copy of the rule in any revised 
form made by the chief hearing 
officer, together with his 
certification of the date of the 
rule's filing. 

The rule so revised as to 
form shall be substituted for 
and shall bear the date of the 
rule originally filed, and shall 
be the official rule of the 
agency . 

(b) In determining the 
drafting form of rules the chief 
hearing officer shall: 

(1) Minimize duplication 
of statutory language; 

(2) Not permit 
incorporations into the rules by 
reference to publications or 
other documents which are not 
conveniently available to the 
public ; and 

(3) To the extent 
practicable, use plain language 
in rules and avoid technical 
language . 

150B-62. Public 
i nspection and notifi ca tion of 

current and rep laced rul es 

.--(a) Immediately upon 
notation of a filing as 
specified in G.S. 150B-59(b), 
the chief hearing officer of the 
Office of Administrative 
Hearings shall make the rule 
available for public inspection 
during regular office hours. 
Superseded, amended. revised, 
and rescinded rules filed in 
accordance with the provisions 
of this Article shall remain 
available for public inspection. 
The current and the prior rules 
so filed shall be separately 
arranged in compliance with the 
provisions of G.S. !50B-61(a). 

(b) The chief hearing 
officer shall make copies of 
current and prior rules, filed 
in accordance with the 
provisions of this Article, 
available to the public at a 
cost to be determined by him. 

(c) Within 50 days of the 
acceptance by the chief hearing 
officer of a rule for filing, 
the agency filing the rule: 

(1) Shall publish the rule 
as prescribed in any applicable 
statute; and 

(2) May distribute the 
rule in a manner selected by the 
agency as best calculated to 
give notice to persons likely to 
be affected by the rule. 

The rule so published or 
distributed shall contain the 
legend: 'The form of this rule 
may be revised by the chief 
hearing officer pursuant to the 
provisions of G.S. 150B-61.' 



NORTH CAROLINA REGISTER 



19 



Publication of 



the 



150B-63. 

e xecutive or der s an d ruler 

North Caroli na Reg ister 

.--(a ) The chief hearing 

officer of the Office of 
Administrative Hearings shall 
compile, index and publish 
executive orders of the Governor 
and all rules filed and 
effective pursuant to the 



this Article. 

As nearly as 

the compilat ion 

classification , 

numbering, and 

to the 

General 



provisions 
Cumulative 
publ ished 
frequently in 
of the chief 
Recompilat ions 
in the chief 
discretion . 
chief hearing 



provisions o] 

(b) 
pract icable 
shall. in 
arrangement , 
indexing, conform 
organization of the 
Statutes . 

(c) If the chief hearing 
officer determines that 
publication of any rule would be 
impracticable, lie shall 
substitute a summary with 
specific reference to the 
official rule on file in his 
office . 

td) As soon as practicable 
after July 1, 1985, the chief 
hearing officer shall publish, 
in print or other form, a 
compilation of all rules in 
force pursuant to the 
of this Article, 
supplements shall be 
annually or more 
the discretion 
hearing officer, 
shall be made 
hearing officer's 

(dl) The 
officer shall also publish at 
periodic intervals, but not less 
often than once each month, the 
North Carolina Register which 
shall contain information 
relating to agency, executive, 
legislative or judicial actions 
that are performed under the 
authority of, or are required 
by, or are issued 
or that otherwise 
Chapter . 

In publishing 
amendments to rules, 
hearing officer shall 
portion of the rule 
being amended as it is to the 
degree necessary to provide 
adequate notice of the nature of 
the proposed amendment , with 
changes shown by striking 
through portions to be deleted 
and underlining portions to be 
added . 

(el Reference copies of 
the compilation. supplements, 
and recomp il a t ions of the rules, 
and the North Carolina Register 
shall be distributed by the 
chief hearing officer as soon 
after publication as 
practicable, without charge, to 
the following officials and 
departments : 



to interpret 
affect , this 



Cd2) 
propo: jc 
the chief 
show the 



Five copies to the 

State Library of the 

of Cultural 

pursuant to G . S . 



I 1 ) One copy to each county 
of the State, which copy nay be 
maintained for public inspection 
in the county in a place 
determined by the county 
commissioners; one copy each to 
the clerk of the Supreme Court 
of North Carolina and the clerk 
of the North Carolina Court of 
Appeals; one copy each to the 
libraries of the Supreme Court 
of North Carolina and the North 
Carolina Court of Appeals; one 
copy to the office of the 
Governor; and five copies to the 
Legislative Services Commission 
for the use of the General 
Assembly ; 

(2) One copy to each State 
official and department to which 
copies of the appellate division 
reports are furnished under G.S. 
7A-343 . 1 ; 

Division oJ 
Department 
Resources , 
147-50.1; and 

(4) One copy of the North 
Carolina Register to each member 
of the General Assembly. 

(f) The chief hearing 
officer shall make available 
copies of the compilation, 
supplements and recomputa t ions 
of the rules and the North 
Carolina Register to other 
persons at a price determined by 
him to cover publication and 
mailing costs. All monies 
received by the Office of 
Administrative Hearings pursuant 
to this section from the sale of 
copies of said publications 
shall he deposited in the State 
trea. y in a special funds 
account to be held in trust for 
the Office of Administrative 
hearings to defray the expense 
of future recompilat ion . 
publication, and distribution of 
such documents. All monies 
involved shall be subj ct to 
audit by the State Auditor. 

(g) Notwithstanding any 
other provision of law, the 
Employment Security Commission 
shall . within 15 days of 
adoption, file all rules adopted 
by it with the chief hearing 
officer for public inspection 
and publication purposes only. 
The chief hearing officer shall 
compile, make available 
inspection. and publish 
rules filed under 
subsection in the same manner 
is urovided for other rules . 

1502-63. 1 . 

A rim i ni st rati ve P ule s Review 

Commis sl^ii reports 

.--The chief hearing officer of 
the Office of Administrative 
hearings shall retain any 



for 
the 

this 
as 



20 



NORTH CAROLINA RLGISTER 



reports of the Administrative 
Rules Review Commission's 
objection to a rule. He shall 
append to any compilation, 
publication, or summation of 
that rule a notation that it has 
been objected to pursuant to 
G.S. 143A-55.3 or 143A-55.4 and, 
where applicable, that the 
objection has been removed. 

1503-64. Judicial and 
of f ic ia 1 notic e 

.--Judicial or official notice 
shall be taken of any rule 
effective under this Article. 



GENERAL STATUTES OF NORTH 

CAROLINA 

CHAPTER 7A, SUBCHAPTER XII 

ADMINISTRATIVE HEARINGS 

Office of Administrative 

Hearings . 



7A- 



status 



urpo 
-There is 



750. 
3 e 
created 



Cr 



eat ion ; 



an Office 
of Administrative Hearings. The 
Office of Administrative 
Hearings is an independent, 
quasi- judicial agency under 
Article III, Section 11 of the 
Constitution and, in accordance 
with Article IV, Section 3 of 
the Constitution, has such 
judicial powers as may be 
reasonably necessary as an 
incident to the accompl ishmen t 
of the purposes for which it is 
created. The Office of 
Administrative Hearings is 
established to provide a source 
of independent hearing officers 
to preside in administrative 
cases and thereby prevent the 
commingling of legislative, 
executive, and judicial 
functions in the administrative 
process. It shall also maintain 
dockets and records of contested 
cases and shall codify and 
publish all administrative 
rules . 

7A-751. D irect o r: p owers 

and duties . --The head of the 

Office of Administrative 
Hearings is the Director. He 
shall serve as the chief hearing 
officer of the Office of 
Administrative Hearings and 
shall have the powers and duties 
conferred on him by this Chapter 
and the Constitution and laws of 
this State. 

The Office of 
Administrative Hearings is 
designated the official deferral 
agency under Section 706 of the 
Civil Rights Act of 1964, as 
amended, for all charges filed 
on a timely basis with the Equal 



Office of 

Hearings 

investigation 



Emplc. .ant Opportunity 

Commission by any Stats or local 
government employee covered 
under Chapter 126 of the General 
Statutes. The Office of 
Administrative Hearings may 
contract with the Equal 
Employment Opportunity 

Commission to become a 706 
deferral agency and may conduct 
necessary investigations and 
informal hearings or 
fact-finding proceedings. The 

Administrative 
may prepare 
reports with the 
findings, conclusions, and 
determinations of probr.ble cause 
that a 706 deferral agency is 
required to males and may take 
other actions required for it to 
function as a 70G deferral 
agency for State ar.rl local 
employees covered under Chapter 
126 of the General Statutes. 
Proceedings conducted by the 
Office of Administrat ivc 
Hearings as a 706 deferral 
agency are not contested cases 
as defined in G.S. 1503-2(2). 

7A-752. D i r r - c t o r ; 
appo i n tme nt s: vacancy 

.--The Director of the Office 
of Administrative Hearings shall 
be appointed by the Chief 
Justice for a term of office of 
four years. The first chief 
hearing officer shall be 
appointed as soon as practicable 
for a term to begin on the day 
of his appointment and to end on 
June 30, l'-. ) 39. Successors to 
the first chief hearing officer 
shall be appointed for a term to 
begin on July 1 of the year the 
preceding term ends and to end 
on June 50 four years later. A 
chief hearing officer may 
continue to serve beyond his 
term until his successor is duly 
appointed and sworn, but any 
holdover shall not affect the 
expiration date of the 
succeeding term. 

If the Director is absent 
or unable to serve temporarily 
for any reason, the senior 
hearing officer present may 
perform the duties of Director 
and chief hearing officer. 
Seniority among hearing officers 
shall be determined by length of 
service as hearing officer, date 
of admission to practice lav/ in 
the General Court of Justice, 
and a<j -■ , in that order. 

7A-753. Additional 

he ar i n r r _g f fl eers ; appo j n tment ; 

s i2_'3_g if) liza t ion 

.--The Director shall appoint 
five additional hearing officers 
to serve in the Office of 
Administrative Hearings. 



NORTH CAROLINA REGISTER 



21 



The 
approval 01 
designate 
officers 
experience 
preside at 
contested 
t h e s e 

officers to pr 
cases . 

7A-754. 
standards o f 



Director may, with the 

the Chief Justice, 
certain hearing 
as having the 
and expertise to 
specific types of 
cases and assign only- 
designated hearing 
;side at those 

Qual if lent ions ; 



conduct 



off. 



remova l 

.--Only persons duly authorized 
to practice law in the General 
Court of Justice shall be 
eligible for appointment as the 
Director and chief hearing 
officer or as a hearing officer 
in the Office of Administrative 
Hearings. Neither the chief 
hearing officer nor any hearing 
ir.ay engage in the 
practice of law as 
in G.S. 84-2.1 while in 
violation of this 
hall be grounds for 
Each hearing officer 



officer 

private 

defined 

office ; 

provision 

removal . 

shall take the oaths requii-ed by 

Chapter 1 1 of the General 

Statutes. A hearing officer may 

be removed from office by the 

Director of the Office of 

Administrative Hearings for just 

cause, as that term is used in 

G.S. 126-35, 

7A-755 . Expenses 
reim b urso d 

.--'Hie Director of the Office 
of Administrative Hearings and 
all hearing officers shall be 
reimbursed for travel and 
subsistence expenses at the 
rates allowed to State officers 
and employees by G.S. 133-6 (a). 

7A-756. Power to 
a dmini ster oaths and 
su b_p oenas 

.--The chief hearing 
and all hearing officers 
Office of 
Hearings may, in 
any pending 
contested case 
150B: 

( 1 ) Administer 
affirmations ; 



issue 

officer 

in the 

Ad minis trat ive 

connection with 

or potential 

under Chapter 

oaths and 



(2) Sign and issue 
subpoenas in the name of the 
Office of Administrative 
Hearings requiring attendance 
and giving of testimony by 
witnesses and the production of 
books, papers. and other 
documentary evidence; and 

(3) Apply to the General 
Court of Justice, Superior Court 
Division, for any order 
necessary to enforce the powers 
conferred in this Article. 

7A-757. Temporary 

hea ring o ffic ers; a pp o i n bments ; 

po wers and stnn dard s ; fee s 

.--When regularly appointed 
hearing officers are 
unavailable, the Director of the 
Office of Administrative 
Hearings may contract with 
qualified individuals to serve 
as hearing officers for specific 
assignments. A temporary 
hearing officer shall have the 
same powers and adhere to the 
same standards 
hearing officer 
of a hearing, 
hearing officer: 



as a regular 

in the conduct 

These temporary 

; shall not be 



employees of the State but shall 
be remunerated for their service 
at a rate not to exceed three 
hundred dollars ($300 .00) per 
day and shall be reimbursed for 
travel and subsistence expenses 
at the rate allowed to State 
officers and employees by G.S. 
133-6(a). 

7 A- 7 5 8 . Ava j J jibility o f 

heari ng officer to exemg t 

agencies 

.--The Director of the Office 
of Administrative Hearings may, 
up; request of tiie head of the 
agency, provide a hearing 
officer to preside at hearings 
of public bodies not otherwise 
authorized or required by 
statute to utilize a hearing 



officer from 
Administrative 
including, but 
State agencies 
provisions of 
municipal corporations 
subdivisions of the S 



the Office of 

Hearings 

not limited to , 

exempt from the 

Chapter 1508, 

or other 

:ate, and 



agencies of such subdivisions 



22 



NORTH CAROLINA REGISTER 



EXECUTIVE ORDERS 



EXECUTIVE ORDER NUMBER 1 

NORTH CAROLINA BOARD OF ETHICS 

JANUARY 31, 1985 

WHEREAS j public office in 
North Carolina Rust always be 
regarded as a public trust; and 

WHEREAS, the people of 
North Carolina have a 
fundamental right to the 
assurance that officers of their 
government will not use their 
public position for personal 
gain; and 

WHEREAS . this 

Adminis brat ion is committed to 
restore and maintain the 
confidence of North Carolina 
citizens in their government; 
and 

WHEREAS, there is a need in 
North Carolina for the creation 
of an institutionalized 
procedure designed to prevent 
the occurrence of conflicts of 
interest in government and to 
deal with them when they do 
occur; and 

WHEREAS, this 

Administration realizes that the 
vast majority of state 
government employees arc honest 
and hard working in their public 
and private lives; 

NOW, THEREFORE, IT IS 
HEREBY ORDERED: 

Section 1. Executive Order 
Number 1, January 10, 1977. 
Executive Order Number 1, dated 
January 10, 1977, is hereby 
rescinded. All records, 
including but not limited to 
Statements of Economic Interest, 
of the North Carolina Board of 
Ethics created pursuant to said 
exexutive order, are transferred 
to the North Carolina Board of 
Ethics herein. 

Section 2. North Carolina 
Board of Ethics. There is 
hereby established the North 
Carolina Board of Ethics 
consisting of five persons to be 
appointed by the Governor to 
serve at his pleasure. The 
Governor shall, from time to 
time, designate one of the 
members as Chairman. The 
members shall receive no 
compensation, but shall receive 
reimbursement for any necessary 
expenses incurred in connection 
with the performance of their 
duties pursuant to General 
Statute 133-15. The Board of 
Ethics shall not be considered a 
public office for the purpose of 
dual office holding. 

Section 3. Persons subject 
to Order. The following persons 



are subject to this order and to 
the jurisdiction of the Board of 
Ethics : 

(a) All employees in the 
Office of the Governor. 

lb) The heads of all 
principal departments of state 
government who are appointed by 
tiie Governor. 

(c) The chief deputy or 
chief administra t ive assistant 
to each of the aforesaid heads 
of principal state departments. 

(d) All "confidential" 
assistants or secretaries to the 
aforesaid department heads (or 
to the aforesaid chief deputies 
and assistants of dcpartmeiit 
heads) as defined in G.S. 
126-5(b)(2) . 

(e) All employees in 
pol icy-making positions as 
designated by the Governor 
pursuant to the State Personnel 
Act as defined in G.S. 
126-5(b)(3), and all 
"confidential" secretaries to 
these individuals as defined in 
G.S. 126-5 (b)(4). 

^ Any other employees in 
the principal departments of 
state government, except in 
those principal departments 
headed by elected heads other 
than the Governor, as may be 
designated by rule of the Board 
subject to the approval of the 
Governor, to the extent such 
designation does not conflict 
with the State Personnel Act. 

(g) The members of all 
commissions, boards and councils 
appointed by the Governor, with 
the exception of members of 
those commissions, boards and 
councils the Board of Ethics 
determines perform solely 
advisory functions. 

(h) The elected heads of 
other principal state 
departments. and certain 
employees of those departments 
as designated by the head, in 
the event of an election by such 
department head to participate 
in the system created by this 
Order as provided for in Section 
8 of this Order . 

(i) Members of North 
Carolina Board of Ethics. 

Section 4 . Exemption From 
Order. Notwithstanding Section 
3, herein, a commission, board 
or council to which the Governor 
■ •■points members, may upon 
written application request the 
Board of Ethics to exempt its 
members from this Order. The 
Board of Ethics shall make a 
determination upon such 
requests, which shall be final, 
after a specific finding by the 
Board that such exemption does 
not violate the intent of this 



NORTH CAROLINA REGISTER 



23 



Order an in no way interferes or 
conflicts with "the proper and 
effective discharge of the 
official duties of the members 
of the commission, board or 
council making the request. The 
determination of the Board of 
Ethics in every such case shall 
be made available for public 
inspection at a conv ient 
locat ion . 

Section 5. Specific 
Prohibit ions 

(a) No person subject to 
this Order shall engage in any 
activity which interferes or is 
in conflict with the proper and 
effective discharge of such 
person's official duties. 

(b) No person who is 
employed by the state in a 
full-tine position and who is 
subject to this Order, shall 
hold any other public office or 
public employment for which 
compensation. direct or 
indirect, is received except 
under circumstances and in the 
manner approved by the Board 
upon review of a written request 
pursuant to Board procedures; 

(c) No person subject to 
this Order shall solicit in 
their official capacity and 
gratuity or other benefits for 
themselves from any other person 
under any circumstances. 

Any exception to the 
foregoing prohibit ions granted 
by the Board. may only be 
allowed by the Board upon 
written application to the 
Eoard, and after a specific 
finding by the Board that such 
activity does not violate the 
intent of tiiis Order and in no 
way interferes or conflicts with 
the proper and effective 
discharge of the official dutie: 



of 



the 



person 



makinq 



the 



request . The Board shall make a 
determination in each such case, 
which shall be final . The 
determination of the Board in 
every such case shall bo made 
available for public inspection 
at a convenient location. 

Section 6. Statements of 
Economic Interest. 

(a) Within thirty days 
from commencement of state 
service or the effective date of 
this Order, whichever is 'aber, 
and thereafter between April 15 
and May 15 of each succeeding 
year, each of the following 
persons subject to this Order 
shall file with the Board a 
sworn Statement of Economic 
Inter es t : 

( i ) Each person 
appointed by the Governor 

and subject to this Order: 



(ii) Each person 
subject to this Order, whether 
or not appointed by the 
Governor, who receives $30,000 
or more from the state; 

(iii) Each person 
subject to this Order, 
irrespective of the amount of 
compensation received, whose 
position is subject to undue 
influence (as determined i^om 
time to tin-? by the Board); 

( iv ) Each person 
designated by the elected head 
of a principal department of 
state government pursuant to 
Section 3 of this order; 

(v) Statements filed 
by members of the Board of 
Ethics shall bo filed with the 
Governor and shall be made 
public . 

(b) The Statement of 
Economic Interest shall contain: 
(i) The name, home 
address, occupation. employer 
and business address of the 
person filing. 

(ii) A list of all assets 
and liabilities of the person 
filing which exceed a valuation 
of $5,000. With respect to each 
asset and liability listed, the 
specific valuation need not be 
set forth, but there should be 
an indication as to whether the 
valuation of each asset or 
liability exceeds $10,000. This 
list shall contain, but shall 
not be limited to, the 
following : 

(A) All real estate, 
witli specific description 
adequate to determine the 
location of eacli parcel; 

IB) The name of each 
publicly-owned company 

(companies which are required to 
register with the Securities and 
Exchange Commission) in which 
securities arc owned, with an 
indication as to whether the 
valuation of the securities 
owned in each company listed 
exceeds $10,000. 

(C) The name of each 
non-publ icly- owned company or 
business entity in which 
securities or other equity 
interests are owned. and an 
indication as to whether the 
valuation of the securities or 
equity interest owned in each 
such company or business entity 
listed exceeds $10,0u0. 

(D) With respect to 
the aforesaid non-publicly-owned 
company or business entities in 
which the interest of the person 
filing exceeds a valuation of 
$10,000, if any such companies 
or business entities own 
securities or equity interests 
in other companies or business 



2 4 



NORTH CAROLINA REGISTER 



entities, the name of each such 
other company or business entity 
should be listed if the 
securities or other equity 
interests in t'uem held by the 
aforesaid non-publicly-owned 
conpanv exceed a valuation of 
$10,000. 

(E) If the person 
filing or his or her spouse or 
dependent children are the 
beneficiary of a trust created, 
established or controlled by the 
person filing, which holds 
assets, and if those assets are 
known, the name of each company 
or other business entity in 
which securities or other equity 
interests are held by the trust 
should be listed, with an 
indication as to whether the 
valuation of the securities or 
equity interest held in each 
such company or business entity 
listed exceed $10,000, and with 
the name and address of the 
trustee and a description of the 
trust. If any of the aforesaid 
assets are securities or other 
equity interests in a 
corporation or other business 
entity, each such corporation or 
business entity should be listed 
separately by name. If the 
assets held by such a trust and 
the name and address of the 
trustee should be provided. 

(F) A list of all 
other assets and liabilities 
•which exceed a valuation of 
$5,000 C including ban]: accounts 
and debts), with an indication 
as to whether each asset and 
liability exceeds a valuation of 
$10,000. 

(iii) A list of all 
sources (not specific amounts) 
of income ( including capital 
gains) siiown on the most recent 
federal and state income tax 
returns of the person filing 
where $5,000 or more was 
received from such source. 

( iv ) If the person filing 
is a practicing attorney, check 
each category of legal 
representation in which tiic 
person filing, and/or his or her 
law firm has, during any single 
year of the past five years, 
earned legal fees in excess of 
five thousand dollars C$5,000) 
from any of the following 
categories of legal 
represent at ion : 

Criminal lav; 

Utilities reqi'lntion or 

representation of 

regulated utilities 

Corporation law 

Taxation 

Decedent's estates 

Labor law 

Insurance law 



Administrative law 

Real property 

Admiralty 

Negligence 

(representing plaintiffs) 
Negligence 

(representing defendants) 

(v) A list of all 
business with which, during the 
past five years, the person 
filing has been associated, 
indicating the timeperiod of 
such association and tiie 
relationship with each business 
as an officer, employee, 
director, partner or a material 
owner of a security or other 
equity interest and indicating 
whether or not each does 
business with or is regulated by 
the nature of the 



the state and 
business, if 
state . 

(vi) In all 
of economic interest 
first one filed 
individual, a list of 



any, done with 

statements 
after the 
by an 
all gifts 
of a value of more than $100 .00 
received during the twelve 
months preceding the date of the 
Statement of Economic Interest 
from sources other than 
relatives of the person filing 
and his or her spouse, and a 
list of all gifts, of value of 
more than $50 .00 received from 
any source having business with 
or regulated by the state. 

(vii) Other 
information as may bo deemed 
necessary to effectuate the 



purpose 


of 


this Order, 


as 


provided 


for 


by rule of 


the 


Board . 









( v i i i ) 
setting forth 
information or 
which the person 
may relate to 
potential conflict of interest 
he or she may have as an 
employee of state government. 



A statement 
any other 
relationship 
filing believes 
any actual or 



sworn 
person 
has read 
Economic 
the best 



(ix) A 
certification by the 
filing that lie or she 
the Statement of 
Interest, and that to 
of his or her knowledge and 
belief it is true, correct, 
complete and that lie or she has 
not transferred and will not 
transfer any asset, interest or 
other property for the purpose 
of concealing it from disclosure 
while retaining an equitable 
interest therein. 

(c) The person filing a 
Statement of Economic Interest 
shall list as specified in 
Section 6(b) the assets, 
liabilities, and sources of 
income of his or her spouse 
which are derived from tiie 
assets or income of the person 



NORTH CAROLINA REGISTER 



filing, controlled by the person 
filing, or for which the person 
filing is jointly or severally 
liable . 

(d) Any person required to 
file a Statement of Economic 
Interest or his or her spouse 
may request the Board to delete 
an item, which may be deleted by 
the Board pursuant to a written 
request , but only upon a finding 
that it is of a confidential 
nature, does not in any way 
relate to the duties of the 
position held or to be held by 
such person and does not create 
an actual or potential conflict 
of interest . 

Ce) The Board of Ethics 
shall issue a fo. -. for such 
Statements of Econonic Interest, 
which in no event shall be later 
than February 15, 1985. 

Cf) After review and 
evaluation by the Board, the 
Statements of Economic Interest 
will be made available by the 
Board for public inspection. 

Section 7. Duties of Board 
of Ethics. 

(a) The Board shall review 
all Statements of Economic 
Interest submitted to it to 
determine their conformity with 
the terms of this Order and the 
Board's rules, and to evaluate 
the financial interests of the 
person filing to determine 
whether there appears to be 
actual or potential conflicts of 
interest. The Board shall 
submit a written report of each 
such evaluation to the Official 
responsible for making the 
appointment of the person 
filing, and to the Governor, 
unless bhe person is an employee 
of one of the other principal 
departments of state government 
listed in Section 8 of this 
Order, in which case a copy of 
the written report shall be sent 
to the elected head of tiiat 
department . The Board may 
recommend remedial action with 
respect to any problem which is 
apparent from any Statement. 

(b) The Board shall 
evaluate all claims of privacy 
made concerning a portion of" a 
Statement of Economic Interest, 
prior to making the Statement 
available for public inspection, 
and the decision of the Board in 
these matters shall be final . 

(c) The Board shall 
provide by rule for the time, 
place and manner of convenient 
public inspection of the 
Statements of Economic Interest. 

(d) The Board shall 
promulgate readily 
understandable rules, forms and 
procedures to carry out the 



purposes of this Order and shall 
publish then. 

(e) The Board shall render 
opinions and determinations on 
matters pertaining to the 
interpretation and application 
of this Order. 

Cf) The Board shall 
provide reasonable assistance to 
all persons subject to this 
Order in complying with the 
terms of this Order. 

(g) The 3oard shall 
receive information from the 
public concerning potential 
conflicts of interst and make 
necessary investigations. The 
Board shall promulgate rules to 
protect all employees from 
specious and unfounded claims 
and damage to their reputations 
which could result from such 
claims. The Board also shall 
promulgate rules to protect 
employees from any direct or 
indirect reprisals from any 
source resulting from efforts to 
inform the Board of the 
existence of potential or acutal 
conflicts of interest in state 
government. The Board also 
shall promulgate rules providing 
for full and fail consideration 
of the merits of all complaints 
received which rules shall 
assure that the rights of all 
parties involved in the 
investigation are protected. 
All complaints and allegations 
concerning actual or potential 
conflicts of interest to be 
considered by the Board nu;c 
contain the name, address, 
telephone number and oath of the 
individual filing such complaint 
or making such allegation. The 
Board shall prepare a report of 
each such investigation and 
forward a copy to the official 
responsible for mailing the 
appointment of the person 
investigated, and to the 
Governor, unless the person 
investigated is ^n employee of 
one of the other principal 
departments of state government 
listed in Section 3 of this 
Order, in which case a copy of 
the written report shall be sent 
to the elected head of that 
department. The Board may 
recommend remedial action with 
respect to any problem revealed 
by such an investigation. 

(h) The Board shall 
request, when necessary to 
accomplish the purposes of this 
Order, additional information 
from persons covered by this 
Order . 

(i> The Board shall meet 
regularly, at the call of the 
Chairman, to carry out its 
duties . 



26 



NORTH CAROLINA REGISTER 



(j) The Board shall submit 
a report annually to the 
Governor on their activities and 
generally on the subject of 
public disclosure, ethics and 
conflicts of interest, including 
recommendations for 

administrative and legislative 
action . 

(k) The Board shall 
perform such other duties an may 
be necessary to accomplish the 
purposes of this Order. 

Section 8. Other Principal 
Departments of State Government . 
The elected heads of other 
principal departments of the 
state government (Office of the 
Lieutenant Governor, Departments 
of the Secretary of State, State 
Auditor, State Treasurer, Public 
Education, Justice, Agriculture, 
Labor and Insurance) and the 
University of North Carolina 
Board of Governors may, and 
hereby are invited to, join in 
the effort represented by this 
Order by providing the Chairman 
of the Board of Ethics with a 
written notice of their election 
to have the terms of this Order 
apply to those employees under 
their jurisdiction (who are not 
covered by the State Personnel 
Act), and with a list of the 
employees under their 
jurisdiction who will be asked 
to submit a Statement of 
Economic Interest. All services 
of the Board available to the 
Governor under this Order shall 
be available to eacli of the 
heads of the aforesaid 
departments so electing, and all 
of the services of the Board 
available to employees under 
this Order shall be available to 
employees brought within the 
coverage of this Order in this 
manner . 

Section 9. Sanctions. The 
failure to any employee to make 
timely filing of a required 
document, the making of a false 
or misleading statement or an 
omission in a document, the 
failure to cooperate with the 
Board of Ethics and the failure 
to comply with the terms of this 
Order, shall be grounds for 
disciplinary action, including 
discharge . 

Section 10. Board Offices. 
The Board of Ethics and its 
staff, for administrative 
purposes only, shall be located 
in the Department of 
Admin is t rat ion . 

Done in Raleigh. North 
Carolina, this the 31st day of 
January in the year of our Lord, 
one thousand nine hundred 
eighty-five . 



EXECUTIVE ORDER NO. 2 
GOVERNOR'S EFFICIENCY STUDY 
COMMISSION 
By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 
Section 1 . ESTABLISHMENT 

(a) There is established a 
Governor's Efficiency Study 
Commission composed of members 
appointed by the Governor from 
among citizens in private sector 
business, industry, and 
professions of the State. 

(b) Thomas I. Storrs of 
Charlotte shall be Chairman and 
Gregory Poole, Jr. of Raleigh 
shall be Vice-Chairman of the 
Commission . 

Section 2. FUNCTIONS 

(a) The commission shall 
conduct a private sector study 
of efficiency in the State 
Government and shall advise the 
Governor, and o titer State 
Government department and agency 
heads with respect to improving 
management and reducing costs. 

(b) In fulfilling its 
undertaking the commissioii shall 
make rccommendat ions containing: 

( 1 ) Opportunities for 
increased efficiency and reduced 
costs in State Government that 
can be realized by Executive 
action and legislation; 

(2) Areas where 
managerial accountability can be 
enhanced and administrative 
control can be improved; 

(3) Opportunities for 
managerial improvements over 
both the short and long term; 

(4) Specific areas 
where further study can be 
justified by potential savings; 
and 

(5) Information and 
data relating to govermental 
expenditures, indebtedness* and 
personnel management. 

Section 3. ADMINISTRATION 

(a) The heads of the State 
departments and agencies shall , 
to the extent permitted by law, 
provide to the commission, its 
consultants and its staff such 
information as may be required 
or desired by the commission in 
carrying out tiie purposes of 
this Order. 

(b) Members of the 
Commission shall serve without 
compensation . 

(c) The 0" :e of the 
Governor shall, to the extent 
permitted by law and subject to 
the availability of funds. 
provide the nmission with such 
facilities, services and other 
supioort as it may require for 



NORTH CAROLINA REGISTER 



27 



carrying out the purpose of this 
order . 

(d) The commission shall 
be funded, staffed and equipped, 
by contributions received by it 
from the private sector and 
without cost to the state 
government . 

Section 4. REPORT OF 
RECOMMENDATIONS 

(a) The commission will 
present its recommendations to 
the Governor and the Office of 
Budget and Management by no 
later than September 13, 1985. 
Section 5. IMPLEMENTATION 

(a) The Office of Budget 
and Management shall review the 
recommendations made by the 
commission and recommend to the 
Governor ways and means for 
implementing the same. Such 
recommendations as are approved 
by the Governor shall be 
implemented by the Office Budget 
of Management when, and to the 
extent. directed by the 
Governor . 
Section 6. PRIOR ORDERS 

(a) All prior Executive 
Orders or portions of prior 
Executive Orders inconsistent 
herewith are hereby repealed. 

This 
this 12th 



Order is effective 
day of February, 1985. 



EXECUTIVE ORDER NO. 3 
NORTH CAROLINA ADVISORY COUNCIL 
ON VOCATIONAL EDUCATION 
By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: Section 
1 . ESTABLISHMENT 

(a) There is established 
the North Carolina Advisory 
Council on Vocational Education, 
( hereinaf ter referred to as the 
"Council") to act as the State 
Council on Vocational Education 
in accordance with the 
requirements of Section 112 of 
Public Law 98-524 enacted by the 
United States Congress and known 
as the "Carl D, Perkins 
Vocational Educational Act." 
(hereinafter referred to as the 
"Act . " ) 

(b) The members of this 
Council shall consist of those 
persons appointed by the 
Governor of North Carolina and 
certified to the United States 
Secretary of Education each 
year, who, to the best of the 
Governor's knowledge and belief, 
mee t 

spec if icd 
Section 2 

The 
select a 



tlu qualif ications 
in the Act. 
FUNCTIONS 
Council shall meet, 
chairman and perform 



pr 
re 
Se 

Ca 
de 

CO 

in 
of 
se 
in 
sp 
as 
Se 
NU 

da 
re 
No 
on 
sa 
tr 
cr 
he 
th 
Co 

th 

Ma 



escribed by and limited to the 



ction 3. ADMINISTRATION 

(a) The State of No 
rolina and all its constitu 
partments and agencies sh 
operate with the Coun 
eluding providing appropri 
fice space and supp 
rvices to assist the Coun 
out its duties 
set out in the A 



carrying 
ecif ically 

amended . 
ction 4. EXECUTIVE OP 
MBER 25 RESCINDED 

Executive Order Number 
ted May 25, 1973, is her 
scinded. All records of 
rth Carolina Advisory Coun 

Education created pursuant 
id executive order, 
ansferred to the Coun 
eated herein. The Coun 
rein shall be the successor 
e North Carolina Advis 
uncil on Education. 

This Order is effect 
is twenty-seventh day 
rch, 1935. 



rth 
eat 
all 
cil 
ate 
ort 
cil 
as 
ct » 

DER 

25, 
eby 
the 
cil 

to 
are 
cil 
cil 

to 
ory 

ive 
of 



EXECUTIVE ORDER NO. 4 

RECENSION OF EXECUTIVE ORDER N 

97 

DATED SEPTEMBER 7, 1983, 

pTCTnft T M P 

REVIEW OF DISABILITY PROCEDURE 

By authority vested in 
as Governor by the Constituti 
and laws of North Carolina it 
ordered : 

(1) Executive Order No. 
executed on September 7, 193 
is rescinded. 

(2) Secretary of t 
Department of Human Resources 
directed to end the mora tori 



th 



nrocessanq 



forwarded by the Social Securi 
Admin is trat ion . 

This Order is effecti 
this 1 til day of May, 1985. 



EXECUTIVE ORDER NO. 5 
GOVERNOR' S COMMISSION 
ON CHILD VICTIMIZATION 
The safety of our Stat 
g people is in jeopa 
use of the increas 
ats of child abuse, negl 

exploitation; and 
easing numbers of runawa 
waways , parental kidnappi 
stranger abductions; 
The State of North Carol 
consider strong measu 
gned to protect 



S 

me 
on 

is 

97 
3 . 

he 
is 
um 

ms 

ty 

ve 



responsibilities and duties 



youn 

beca 

thre 

and 

incr 

thro 

and 

must 
desi 
chil 

vest 
Cons 
Caro 



or en ; 

Therefore . 
ed in me a: 
t itu t ion 
lina, it 



by the author 
Governor by 
and laws of No 
is ORDERED: 



e' s 
rdy 
ing 
ec t 
the 

ys, 

ngs 

ina 

our 

ity 
the 
r th 



28 



NORTH CAROLINA REGISTER 



Section 1. ESTABLISHMENT 

I hereby establish the 
Governor's Commission on Child 
Victimization, which shall be 
established under the office of 
the Governor. The Commission 
shall be composed of at least 
fifteen and not more than thirty 



Chairman or the 

Commission is 

conduct public 



shall 



members appointed by the 
Governor to serve at the 
pleasure of the Governor. The 
Governor shall designate one of 
the members as Chairman. The 
members appointed by the 
Governor will be respresentative 
of the following areas: 

( 1 ) State departments 
currently involved in education, 
safety, delinquency prevention 
and intervention services for 
children and youth; 

(2) Frivate business and 
community leaders; 

(3) Law enforcement; 

(4) The judicial system; 

(5) Private citizens or 
volunteers who have developed or 
implemented model youth programs 
within the State. 
Section 2. FUNCTIONS 

(a) The Commission shall 
meet regularly at the call of 
the Chairman. and may hold 
special meetings at any time at 
the call of the 
Governor . The 
authorized to 
hearings . 

(b) The Commission 
have the following duties: 

(1) Encourage private 
sector involvement and help 
coordinate private groups and 
business activity in the 
prevention of the victimization 
of youth and children. 

(2) Coordinate the 
various state agencies dealing 
with the victimization of 
children in order to create an 
overall program without 
duplicating effort. 

(3) Consider new 
prevention programs for North 
Carolina . 

(4) Review existing 
State and local programs in 
North Carolina which address the 
prevention of the victimization 
of children; 

( 5 ) Review the 
General Statutes of North 
Carolina applicable to children 
and youth; 

(6) Review proposals 
and model prevention programs in 
other states; 

(7) Other duties as 
assigned by the Governor. 
Section 3. ADMINISTRATION 

In support of the 
Commission, a staff of three 
will be created: Section 2 



(a) Executive Direc 
Public Information Administr 
and Administrative Secret 
Funds shall be authorized 
made available by the 
Crime Commission. 

(b) Members of 
Commission may be reimbursed 
necessary travel and subsist 
expenses as authorized 
N.C.G.S. 133-5. Funds 
reimbursement of sucli expe 
shall be made available 
funds authorized by 
Governor's Crime Commission . 
Section 4. IMPLEMENTATION 
DURATION 

(a) This order shall 
effective immediately. 

Cb) The Commission s 
dissolve at the pleasure of 
Governor, but no later 
September 30, 1986. 

This Order is effec 
this twentieth day of May, 1 



tor, 

ator 

ary . 

and 

Governor ' s 

the 

for 

ance 

by 

for 

nses 

from 

the 



AND 

be 

hall 
the 

than 

t ive 

985. 



EXECUTIVE ORDER NO. 6 
STATE EMPLOYEES' WORK PLACE 
REQUIREMENTS FOR SAFETY AND 
HEALTH 
By the authority vested in 
me as Governor by the 
Constitution and lav;s of North 
Carolina it is ordered: 
Section 1 . ESTABLISHMENT 

(a) There is established a 
State Employees' Work Place 
Requirements Program for Safety 
and Health for North Carolina to 
meet its loss prevention 
responsibilities and provide 
safe and healthful conditions of 
employment in all areas of the 
State. Employees subject to the 
State Personnel Act will be 
covered by this program as well 
as those employees exempt from 
the State Personnel Act. 

(b) i'he State Personnel 
Director is responsible for 
developing a program which shall 
include, but not be limited to, 
concerns for : 

( 1 ) protecting 
employees from job related 
injuries or health impairment; 

(2) preventing 
accidents and fires; 

(3 J emergency medical 
procedures and emergency plans ; 

(4) monitoring 
industrial hygiene, housekeeping 
and saniti :n; and 

15 J utilizing 
available resources within State 
Government and elsewhere to 
inform and educate personnel in 
all areas of preventive health, 
safety, personal security, 
personal care, and other 
individual renponsib ili t ies . 
-UNCTIONS 



NORTH CAROLINA REGISTER 



29 



(a) The State Personnel 
Director shall develop a 
comprehensive State Employees' 
Work Place Requirements Policy 
and Program for recommonda t ion 
to the State Personnel 
Commission on or before 
September 15. 1935. 

(b) Upon approval by the 
State Personnel Commission, the 
State Personnel Director shall 
implement and maintain the State 
Employees' Work Place 
Requirements Program which will 
be expanded to cover employees 
exempt from the State Personnel 
Act. 

(c) The State Employees' 
Work Place Requirements Program 
shall reflect fundamental safety 
and health principles. The 
Program is to be designed to 
serve as a model to assist 
agency heads in meeting their 
legal safety and health 
responsibilities under General 
Statutes 95-148. 

Section 3. ADMINISTRATION 

(a) Each agency head shall 
designate one employee as Safety 
Officer to be responsible for 
implementation of the State 
Employees' Work Place 
Requirements Program within the 
agency and development of 
additional safety and/or health 
procedures necessary to meet 
special situations that arc 
unique to a particular agency. 
The names of these individuals 
are to be forwarded to the State 
Personnel Director within 30 
days from the date of this 
order . 

(b) The State Personnel 
Director shall be responsible 
for es tablishing lines of 
communication between the 
individuals named by the agency 
heads and forming a "Safety 
Network" within Stale 
Governineiit. The Director shall 
also be responsible for 
coordinating needed training and 
technical assistance with the 
Occupational Safety and Health 
Division of the North Carolina 
Department of Labor, Health 
Services Division of the 
Department of Human Resources, 
North Carolina Industrial 
Commission and other technical 
resources of the State. 

(c) Those agencies with 
existing safety and health 
programs and safety staff 
already in place are to review 
both sets of regulations to 
ascertain that the provisions of 
the State Employees' Work Place 
Requirements Program are covered 
by their existing programs. and 
if not. to make necessary 
mod ificat ions . 



Section 4. REPORTS AND RECORDS 

(a) The State Fersonnel 
Director shall communicate with 
the Governor and the agency 
heads on the implementation and 
ongoing results of the Work 
Place Requirements Prcnram and 
provide an annual analysis of 
injury and compensation 
statist ics . 

(b) In accordance with 
General Statute 95-143, agency 
heads shall consult with the 
Commissioner of Labor regarding 
record keeping and shall make an 
annual report to the 
Commissioner of Labor with 
respect to occupational 
accidents and injuries. 
Section 5. PRIOR ORDERS 

All prior Executive Orders 
or portions of prior Executive 
Orders inconsistent are hereby 
repealed . 

This Order is effective the 
20th day of May, 1585. 



EXECUTIVE ORDER NUMBER 7 

WOMEN'S ECONOMIC DEVELOPMENT 

ADVISORY COUNCIL 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby create 
and establish the North Carolina 
Women's Economic Development 
Advisory Council. This Council 
will be composed of at least 
twelve (12) members who have 
distinguished themselves by 
their accomplishments in the 
private sector. The membership 
of this Council will, to the 
extent practical, contain 
representatives from all major 
geographic areas of the State. 

The members of this Council 
will be appointed by the 
Governor and will serve at the 
pleasure of the Governor. 

Section 2. The Governor 
shall designate a Chairman from 
the membership of the Council. 
The Council will meet at the 
call of the Chairman or the 
Secretary of Administration. 

Section 3. The Women's 
Economic Development Advisory 
Council will have the duty to 
thoroughly explore opportunities 
for women in our economy; 
carefully evaluate those 
opportunities; and advise the 
Secretary of Administration and 
the Secretary of Commerce on 
strategic courses of action, 
consistent with the State's 
economic development philosophy, 
which will best promote and 
encourage equal opportunity and 
the advancement and integration 



30 



NORTH CAROLINA REGISTER 



of women into all aspects of 
North Carolina's economy. 

Section 4. The Department 
of Administration shall provide 
the administrative support for 
this Council . 

Section 5. Members of the 
Women's Economic Development 
Advisory Council shall be 
entitled to reimbursement for 
subsistence and travel expenses 
as may be generally authorized 
for members of State Boards and 
Commissions . 

Section 6. This Executive 
Order is effective immediately 
and shall remain in effect until 
June 30, 1987, or unless 
terminated earlier or extended 
by further Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June 
1985. 



EXECUTIVE ORDER NUMBER 8 

GOVERNOR'S ADVISORY COMMITTEE ON 

TRAVEL AND TOURISM 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the Governor's 
Advisory Committee on Travel and 
Tourism . 



Sect ion 2 . 
shall appoint 
persons to serve 
Committee . 
appointed 
representative 
elements of 



The Governor 

at least 15 

on the Advisory 

Those persons 

shall be 

of the various 

travel and 



geographic regions of the state. 
The Governor shall designate the 
Chairman of the Advisory 
Committee. All members shall 
serve at the pleasure of the 
Governor . 

Section 3 . 
shall meet on a 
or as directed 
or the Secretary 

Sec t ion 4 . 
shall perform 



The Committee 

quarterly basis 

by the Governor 

of Commerce . 

The Committee 

such duties as 



assigned by the Governor ami 
shall work closely and in 
coordination with the Travel and 
Tourism Committee of the North 
Carolina Economic Development 
Board of the Department of 
Commerce . 

Section 5 . 
official business, 
the Committee shall 
to such per 
reimbursement for 
subsistence as may be 
for members of State Boards 
Commissions generally. 
Secretary of the Department 
Commerce shall provide funds 
this purpose. 



While on 

members of 

be entitled 

diem and 

travel and 

authorized 

and 

The 

of 

for 



Section 6. Executive Order 
Number 46, dated March 14, 1980, 
is hereby rescinded. All 
records of the Governor's 
Advisory Committee on Travel and 
Tourism created pursuant to said 
executive order, arc transferred 
to the Advisory Committee 
created herein. The Advisory 
Committee herein shall be the 
successor to the Governor's 
Advisory Committee on Travel and 
Tourism . 

Section 7. This Executive 
Order is effective immediately 
and shall remain in effect until 
June 30, 1907, unless terminated 
earlier or extended by further 
Executive Order. 



EXECUTIVE ORDER NUMBER 9 
NORTH CAROLINA PUBLIC 
TRANSPORTATION ADVISORY COUNCIL 

By the authority vested in 
me as Governor bv the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . There is hereby 
created and established the 
North Carolina Public 
Transportation Advisory Council. 
The Advisory Council will be 
composed of twenty-one members! 
one member from each of the 
fourteen highway divisions, five 
at large members, and the 
Secretary of the Department of 
Human Resources and the 
Department of Transportation. 
The Governor shall appoint the 
nineteen lay members to serve at 
the pleasure of the Governor who 
shall represent a cross section 
of transportation interests. 
The Secretary of Transportation 



Advisory 

Advisory 
following 



shall chair the 
Council . 

Section 2. The 
Council shall have the 
duties : 

( 1 ) To review and 
make recommendations to the 
Interagency Transportation 
Review Committee concerning 
guidelines and criteria for the 
Review Committee; 

(2) To review and 
made recommendations to the 
funding agencies concerning 
project situations when there 
are unresolved problems between 
the Review Committee and the 
applicant or other local 
interests ; 

(3) To advise and 
make recommendations to the 
Board of Transportation 
concerning public transportation 
policy and expenditure of state 
and federal funds for public 
transportation; and 

(4 ) To develop 
transportation policies which 



NORTH CAROLINA REGISTER 



31 



are consistent with promoting 
balanced economic growth. 

Section 3. There is hereby 
created the North Carolina 
Interagency Transportation 
Review Committee. The Review 
Committee will be composed of 
Representatives from the 
Departments of Education. Human 
Resources. Natural Resources and 
Community Development, and 
Transportation. The Secretaries 
of the respective departments 
shall appoint a representative 
and an alternate from their 
departments who shall represent 
each funding agency. The 
Director of the Public 
Transportation Division shall 
chair the Review Committee. 

Section 4. The Review 
Committee shall have the 
following duties: 

( 1 ) To implement 
policy and apply criteria as 
developed by the Advisory 
Council; 

(2) To provide 
written notice of 
recommendations based upon 
review of applications or plans 
to the appropriate state agency; 
and 

(3) To review all 
transportation components 

of applications or plans 
requesting transportation 
funding when the funds are 
administered by a state agency. 

Section 6. The Secretary 
of Transportation, after 
conferring with the appropriate 
departmental secretaries. shall 
have the final authority on all 
transportation funding 

decis ions . 

Section 7. To further the 
objectives of this Executive 
Order, all departments and 
agencies under the Governor's 
Jurisdiction shall immediately 
draft directives and procedures 
necessary to implement these 
policies. Such drafts shall be 
submitted to the Secretary of 
Transportation for review and 
approval within 60 days of the 
signing of this Executive Order. 

Section 8. Every agency 
within State Government within 
my authority is hereby directed 
to cooperate with the Council 
and Committee in providing all 
necessary information regarding 
their activities, and to 
disseminate the departmental 
directives and procedures within 
the agency which are necessary 
to implement this Executive 
Order . 

Section 9. Executive Order 
Number 29, dated Deccnbcr 6, 
1978 is hereby rescinded. Ail 
records of the North Carolina 



Public Transportation Advisory 
Council created pursuant to said 
executive order, are transferred 
to the Council created herein. 
The Council herein shall be the 
successor to the North Carolina 
Public Transportation Advisory 
Council . 

Section 10. This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 19C7. unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina. this 
the twenty-eighth day of June, 
1935. 



EXECUTIVE ORDER NUMBER 10 

NORTH CAROLINA SHALL BUSINESS 

COUNCIL 

By the authority vested in 
me as Governor by the 
Constitution and lav- of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the North Carolina 
Small Business Council. The 
Council shall be composed of at 
least 20 members appointed by 
the Governor to serve at the 
pleasure of the Governor. The 
Governor shall designate one of 
the members as Chairman. 

Section 2. The Council 
shall meet at least once in each 
quarter and may hold special 
meetings at any time at the call 
of the Chairman, the Governor or 
the Secretary of Commerce. 

Section 3. The members of 
the Council shall not receive 
any compensation, per diem, or 
reimbursement for travel and 
subsistence 
services . 



cpenses for their 

Section 4. Purposes of the 
Council. The purposes of the 
North Carolina Small Business 
Council are as follows: 

(A) To prepare and 
present recommendations to the 

Governor ana General 
Assembly for changes in 
statutes, rules and regulations, 
including the state tax 
structure, which affect small 
businesses in North Carolina. 

(B) To make 
recommendations to the Governor 
and General Assembly for new 
legislation, agency programs and 
other actions needed to assist 
small business growth and 
development . 

(C) To assist the 
Small Business Development 
Section of tbe Business 
Assistance Division of the 
Department of Commerce in 
determining the need for 
programs for small businesses in 



7 ,2 



NORTH CAROLINA REGISTER 



education, training, marketing, 
funding resources, technological 
assistance and related areas. 

(D) The Council is 
auhhorized to conduct interviews 
and solicit non-confidential 
information to carry out the 
provisions of (A), (3) and (C) 
above . 

Section 5. The Small 
Business Development Section of 
the Business Assistance Division 
of the Department of Commerce 
shall provide staff and support 
services for the Council. 

Section 6. It shall be the 
responsibility of each Cabinet 
Department Secretary to make 
every reasonable effort for his 
or her department to cooperate 
with the Worth Carolina Small 
Business Council to carry out 
the provisions of this Order. 

Section 7. The elected 
heads of the Council of State 
Departments arc encouraged and 
invited to join in the 
provisions of this Order. All 
services of the Council 
available to the Governor" and 
his Cabinet under this Order 
shall be available to each of 
the heads of the Council of 
State Departments electing to 
participate . 

Section 3. Executive Order 
Number 51, dated Hay 16, 1980, 
is hereby rescinded. All 
records of the North Carolina 
Small Business Advocacy Council 
created pursuant to said 
executive order, are transferred 
to the Council created herein. 
The Council herein shall be the 
successor to the North Carolina 
Small Business Advocacy Council. 

Section 9. This Order 
shall be effectively immediately 
and shall remain in effect until 
June 30, 1937, unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
twenty-eighth day of June, 1985. 



AMENDMENT TO EXECUTIVE ORDER 

NUMBER 10 

NORTH CAROLINA SMALL BUSINESS 

COUNCIL 

By The authority vested in 

me as Governor by the 

Constitution and laws of North 

Carolina it is ORDERED: 

Section 1 . Lines 1 and 2 
of Subparagraph (C) of Section 4 
of Executive Order Number 10 are 
amended by deleting the words 
"Small Business Development 
Section of the Business 
Assistance Division" and 
inserting in lieu thereof "Small 
Business Development Division" 



and lines 1 and 2 of Section 5 
of Executive Order Number 10 are 
amended by deleting the words 
"Small Business Development 
Section of the Business 
Assistance Division" and 
inserting in lieu thereof "Small 
Business Development Division." 

Section 2. This amendment 
is made because the Business 
Assistance Division previously 
described lias been replaced by 
the Small Business Development 
Division . 

This action effective the 
25th day of July, 1985. 



EXECUTIVE ORDER NUMBER 1 1 

GOVERNOR'S ADVISORY COMMISSION 

ON MILITARY AFFAIRS 

By the authority vested in 
me as Governor by the 
Consititut ion and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the Governor's 
Advisory Commission on Military 
Affairs. The Commission shall 
be comprised of at least 
twenty-five (25) members 
appointed by the Governor to 
serve for a term of two (2) 
years. Membership shall consist 
of active and retired military 
personnel, State and local 
government officials and local 
citizens who have an interest in 
or relationship to the military 
community. The Governor shall 
designate one of the members as 
Chairman . 

Section 2. The Commission 
shall meet regularly at the call 
of the chairman and may hold 
special meetings at any time at 
the will of the Chairman or the 
Governor or the Secretary of 
Crime Control and Public Safety. 
Support staff for the Commission 
shall come from the Department 
of Crime Control and Public 
Safety . 

Section 3. The Commission 
shall have the following duties: 

(a) Provide a forum 
for the discussion issues 
concerning major military 
installations in the State, 
active and retired military 
personnel and their families. 

(b) Formulate goals 
and objectives which enhance 
cooperation and understanding 
between the military components, 
the communities, State and local 
governments, and the general 
public . 

Cc) Collect and study 
information related to 
supporting 

and strengthening the 
military presence within the 
Sta tc . 



NORTH CAROLINA REGISTER 



(d) Review proposed 
military affairs legislation . 

(e) Advise the 
Governor on measures and 
activities which would support 
and enhance defense 
installations and military 
families within the State. 

Section 4. Executive Order 
Number 80. dated April 30, 1982, 
is hereby rescinded. Ail 
records of the Governor's 
Advisory Commission on Military 
Affairs created pursuant to said 
executive order, are transferred 
to the Commission created 
herein. The Commission herein 
shall be the successor to the 
Governor's Advisory Commission 
on Military Affairs. 

Section 5. This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 1937, unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June, 
1935. 



EXECUTIVE ORDER NUMBER 12 

GOVERNOR'S HIGHWAY SAFETY 

COMMISSION 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED; 

Section 1 . I hereby 
establish the Governor's 
Commission on Highway Safety. 
The Commission shall be composed 
of at least twelve (12) members 
appointed by the Governor to 
serve at the pleasure of the 
Governor. The Governor shall 
designate one of the members as 
Chairman . 

Section 2. The Commission 
shall meet regularly at the call 
of the Chairman and may hold 
special meetings at any time at 
the call of the Chairman, the 
Governor or the Secretary of 
Transportation . 

Section 3. Members of the 
Commission shall be reimbursed 
for such necessary travel and 
subsistence expenses as are 
authorized by N.C.G.S. 138-5. 
Funds for reimbursement of such 
expenses shall be made available 
from the Governor's Highway 
Safety Program. 

Section 4. The Commission 
shall have the following duties: 

(a) Establish 
statewide highway safety goals 
and objectives. 

< b ) Review and 
support proposed highway safety 
legislat ion . 



(c) Collect, analyze, 
and distribute information 
related to highway safety. 

(d) Survey public 
opinion, attitudes, and idec.s on 
highway safety. 

(c) Establish 



the 



programs and activities 

(f) Advise 
Governor on ways to promote 
highway safety in North 
Carolina , 

Section 5. Executive Order 
Number 56, dated October 30, 
1930 is hereby rescinded. All 
records of the Governor's 
Highway Safety Commission 
created pursuant to said 
executive order, are transferred 
to the Commission created 
herein. The Commission herein 
shall be the successor to the 
Governor's Highway Safety 
Commission . 

Section 6. This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 1987, unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June, 
1985. 



EXECUTIVE ORDER NUMBER 13 



NORTH CAROL] 



STA 



IALTH 



COORDINATING COUNCIL 
By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby create 
and establish under the auspices 
of tiie Department of Human 
Resources a new North Carolina 
Health Coordinating Council 
whose membership r.:\d functions 
are commensurate with the health 
planning needs of North 
Carolina . 

Section 2. The North 

Carolina Health Coordinating 
council shall hove the following 
duties and functions: 

( 1 ) Serve as a forum 
for hearing regional concerns 
and recommendations relating to 
health planning. 

(2) Compile a list of 
state health needs and advise 
the Department of Human 
Resources . 

(3) Advise the 
Department of Human Resources on 
issues related to state health 
needs, giving attention to 
local, regional and statewide 
needs . 

( 4 ) Review and 
comment on contents of documents 
related to health planning and 



34 



NORTH CAROLINA REGISTER 



Section 
The North 
Coordinating 
consist of 
members who 



make recommendations concerning 
them to the Secretary of Human 
Resources and the Governor. 

(5) Advise the 
Department of Human Resources on 
cost effective mechanisms for 
achieving health needs. 

(6) Advise the 
Department of Human Resources on 
the best use and coordination of 
available resources. 

(7) Advise and make 
recommendations on legislative 
proposals relating to health 
needs, including budgetary 
issues . 

3. Membership: 
Carolina Health 
Council shall 
not more than 23 
shall be appointed 
by the Governor as follows: 
Academic Medical Centers 1 
Area Health Education Centers 1 
Business and Industry (at 2 

least one individual 

representing small business 

and one representing large 

business ) 
Health Insurance Industry 
NC Association of County 

Commissioners 
NC Health Care Facilities 

Associat ion 
NC Hospital Association 
NC Home Health Care 

Association 
NC Medical Society 
NC House of Representatives 
NC Senate 
Other Health Professional 2 

Associat ions ( e . g . . Nursing, 

Public Health, Dentistry, 

Pharmacy, Chiropractic, etc.) 
Regional Representation (To 6-8 

provide adequate 

representation to all 

regions of the State. 

Emphasis should be on 

consumers of health 

care who are involved 

in health planning 

efforts at regional 

level, such as members 

of business/health 

coalitions or regional 

health planning councils) 

Veterans Administration 1 

(non-voting ) 
Total 23 

Section 4. Terms of 
Membership: The terms of 
membership of the North Carolina 
Health coordinating council 
shall be staggered so that the 
terms of approximately one-third 
of the members shall expire in a 
single calendar year. Terms 
shall be staggered in the 
following manner for the first 
three years : 

seven serving one year, 
eight serving two years, 
eight serving three years. 



After the first three years, 
each appointment shall be for a 
term of three years . 

Section 5. Vacancies: The 
Governor shall have the power to 
remove from office any member of 
the North Carolina Health 
coordinating council for 
misfeasance, malfeasance, or 
nonfeasance. A vacancy occuring 
during a term of appointment is 
filled in tiie same manner as the 
original appointment and for the 
balance of the unexpired term. 

Section 6. Travel expense: 
Members of the Council shall 
receive necessary travel and 
substance expenses in accordance 
with the provisions of G.S. 
130-5. 

Section 7. Chairman: The 
Chairman and Vice Chairman of 
North Carolina Health 
Coordinating council shall be 
appointed by the Governor. The 
term of office for the Chairman 
and Vice Chairman shall be two 
calendar years. The Council may 
elect other such officers as it 
deems necessary. 

Section 8. Meetings: The 
Council shall meet quarterly and 
at other times at the call of 
the chairman or upon written 
request of at least ten (10) of 
its members. All business 
meetings of the Council, its 
committees and subcommittees or 
special task forces shall be 
open to the public. 

Section 9. Staff 

Assistance: The Department of 
Human Resources sh ' 1 provide 
clerical and other services 
required by the Council . 

Section 10. Executive 
Order Number 91, dated February 
23, 1983 is hereby rescinded. 
All records of the North 
Carolina State Health 
Coordinating Council created 
pursuant to said executive 
order, are transferred to the 
Council created herein. The 
Council herein shall be the 
successor to the North Carolina 
State Health Coordinating 
Council . 

Section 1 1 . This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 1937, unless terminated 
earlier or extended by further 
Evecutive Order. 

Done in the Canital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June, 
1985. 



EXECUTIVE ORDER NUMBER 14 

GOVERNOR'S TASK FORCE ON 

DOMESTIC VIOLENCE 



NORTH CAROLINA REGISTER 



35 



By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the Governor's Task 
Force on Domestic Violence. 

Section 2. The Governor 
shall appoint at least ten 
persons as members of tiie Task 
Force, who shall be 
representative of the "arious 
professions concerned with this 
problem, such as the medical, 
legal, social service, and 
mental health professions. In 
addition, the Governor shall 
appoint as members 
representatives from the 
Governor's Crime Commission, the 
Department of Crime Control and 
Public Safety, the Department of 
Justice, the Department of 
Administration, the 

Administrative Office of the 
Courts, the Department of Human 
Resources, the Department of 
Public Instruction, and the 
North Carolina Council on the 
Status of Women. The Governor 
shall designate the Chairperson 
of the Task Force. All members 
shall serve at the pleasure of 
the Governor . 

Section 3. The Task Force 
shall meet on a quarterly basis 
or as directed by the Governor 
or Secretary of Administration. 

Section 4. The Tack Force 
shall perform such duties as 
assigned by the Governor and the 
Secretary of the Department of 
Administration, and shall work 
closely with the staff of the 
North Carolina Council on the 
Status of Women and the 
Governor's Crime Commission. 
The Task Force shall have the 
following duties: 

(A) To review and 
make recommendations for state 
government to coordinate agency 
activities in assisting victims 
of domestic violence: 

(B) To evaluate and 
monitor the Domestic Violence 
Act and other laws in the area; 

(C) To develop model 
programs for use by local 
communities; and 

( D ) To provide 
community education about 
domestic violence issues. 

Section 5. While on 
official business, members of 
the Task Force shall be entitled 
to such per diem and 
reimbursement for travel and 
subsistence as rr.^y lie authorized 
for members of State Boards and 
Commissions generally. The 
North Carolina Council on the 
Status of Women shall provide 



the planning and administrative 
support for the Task Force. 

Section 6. Executive Order 
Number 55. dated October 27, 
1980, is hereby rescinded. All 



the Governor 



Tas 



JC 



records or 
Force en Domestic Violence 
created pursuant to said 
executive order, are transferred 
to the Task Force herein. The 
Task Force herein shall be the 
successor to the Governor's Task 
Force on Domestic Violence. 

Section 7. This Order 
shall become effective 
immediately and shall remain in 
effect until June 30, 1937, 
unless terminated earlier or 
extended by further Executive 
Order. 

Done in Raleigh, North 
Carolina, this twenty-eighty day 
of June, 19C5. 



EXECUTIVE ORDER NUMBER 15 

JUVENILE JUSTICE PLANNING 

CCMIilTTEE 

By the authority vested in 

me as Governor by the 

Const itution and laws of North 

Carolina it is ORDERED: 

Section 1 . The membei'ship 
of the Juvenile Justice Planning 
Committee, an adjunct committee 
of the Governor's Crime 
Commission, shall consist of 
twenty three (23) members 
selected as follows: 

(a; The following 
fifteen (15 J members shall serve 
by virtue of their membership in 
the Commission: The two (2) 
citizens with knowledge of 
juvenile delinquency and the 
school system; the two (2) 
citizens under the age of 21; 
the representative of a 
"private" juvenile delinquency 
program; the citizen appointed 
at the discretion of the 
Governor; tiie judge of district 
court specializing in juvenile 
matters; one of the three county 
commissioners or county 
officials; one of the three 
police executives; the Secretary 
of Crime Control a:id Public 
Safety; the Secretary of the 
Department of human Resoarces; 
the Superintendent of Public 
Instr" tion; the Administrator 
for Juvenile Services of the 
Administrative Office of the 
Courts; the Attorney General and 
the Director of Youth Services. 

(b) The following 
seven (7) members shall be 
appointed by tiie Governor and 
serve at the pleasure of the 
Governor: Representatives of a 
business group or a business 
that employs youth; of a private 
organization that focuses on 



3 6 



NORTH CAROLINA REGISTER 



strengthening the family unit; 
parent groups; neglected or 
dependent children and 
delinquency prevention and 
treatment; of a local government 
youth serving agency; and two 
youth members under the age of 
twenty-one, and who are or have 
been under the jurisdiction of 
the juvenile justice system. 

(c) The Chairman of 
the Juvenile Law Study 
Commission appointed pursuant to 
North Carolina General Statute 
Section 7A-740. 

Section 2. This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 1989, unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June, 
1985. 



EXECUTIVE ORDER NUMBER 17 

AMERICA' A FOUR HUNDREDTH 

ANNIVERSARY 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1. Executive Order 
Number 88, dated November 9, 
1905, which establishes county 
committees on America's 400th 
Anniversary, is hereby extended 
throi h and including December 
31, 1937. 

Section 2. This Order 
shall be effective immediately 
and shall remain in effect until 
June 30, 1987, unless terminated 
earlier or extended by further 
Executive Order. 

Done in the Capital City of 
Raleigh, North Carolina, this 
the twenty-eighth day of June 
1935. 



EXECUTIVE ORDER NUMBER 16 

NORTH CAROLINA COUNCIL ON THE 

HOLOCAUST 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the North Carolina 
Council on the Holocaust. The 
purpose of the Council is to 
prevent future atrocities by 
developing a program of 
education and observance of the 
Holocaust . 

Section 2. The Council 
shall consist of not more than 
25 members appointed by the 
Governor to serve at the 
pleasure of the Governor. The 
Governor shall designate from 
among the membership the 
Chairman and Vice-Chairman . 

Section 3. Executive Order 
Number 63, dated April 29, 1981, 
is hereby rescinded. All 
records of t?ie North Carolina 
Council for the Holocaust 
created pursuant to said 
executive order, are transferred 
to the Council herein. The 
Council herein shall be the 
successor to the North Carolina 
Council on the Holocaust. 

Section 4. This Order 
shall become effective 
immediately and shall remain in 
effect until June 30, 1987, 
unless terminated earlier or 
extended by further Executive 
Order . 

Done in Raleigh, North 
Carolina, this twenty-eighth day 
of June, 1985. 



EXECUTIVE ORDER MO. 13 
EQUAL EMPLOYMENT OPPORTUNITY 

It is the policy of the 
State of North Carolina to 
provide equal employment 
opportunities for all state 
employees and for all applicants 
for state employment without 
regard to race, religion, color, 
national origin, sex, age or 
handicap . 

As an employer, the State 
has and continues to recognize 
the efficient and effective 
government requires the talents, 
shills Eli ! abilities of all 
available human resources. 

Policies have been adopted 
by the State Personnel 
Commission and equal employment 
opportunity program which 
emphasizes talcing positive 
measures lias been established to 
assure equitable and fair 
representation of all of our 
citizens . 

Therefore, by the authority 
vested in me as Governor by the 
Constitution and laws of North 
Carolina, it is ORDERED: 

Section 1. EQUAL EMPLOYMENT 
POLICIES AND PROGRAMS 

The State of North Carolina 
is committed to equal employment 
opportunity and the equal 
opportunity program to 
accomplish total equal 
employment in and throughout all 
aspects of its workforce. The 
policies and programs that have 
been adopted by the Personnel 
Commission represent the 
commitment of the state and must 
be complied vjith fullv. 

Section 2. ADMINISTRATION 

(A) Agencies 

The head of each 
agency, department, commission 



NORTH CAROLINA REGISTER 



37 



or university is responsible for 
assuring that these policies and 
programs are implemented fully 
and successfully throughout 
their organizations. Each 
agency head shall appoint an 
individual designated as the ElfO 
Officer . 

State appointing 
authorities and other management 
personnel will take positive 
measures that are established by 
the State Personnel Director 
with approval of the State 
Personnel Commission to ensure 
that equal opportunity is 
available in all areas of 
employment activities including 
recruitment, hiring, testing, 
training, transfer, performance 
appraisal, promotion, demotion, 
compensation, termination, 
layoffs and other terms, 
conditions or privileges of 
employment. Such measures shall 
be undertaken to improve the 
representation of women, 
minority group members, 
handicapped and older persons in 
and throughout all levels of the 
state's workforce. 

(B) Office of State 
Personnel 

The State Personnel 
Director is responsible for 
assisting management in 
achieving equal employment 
opportunity objectives through: 

1) establishing policies, 
guidelines and programs with the 
Personnel Commission's approval; 

2) evaluating and monitoring 
program effectiveness; and 3) 
providing technical assistance 
and training . 

Section 3. REPORTS AND 
RECORDS 

The State Personnel 
Director shall communicate with 
the Governor and the agency 
heads on the implementation and 
results of the Equal Employment 
Opportunity program and provide 
an annual analysis of the 
program's progress. 

Section 4. CITIZEN 
CONTRIBUTION 

The North Carolina Human 
Relations Council shall advise 
and assist the Governor and the 
Office of State Personnel in the 
implementation of the State's 
equal employment opportunity 
program, thereby assuring 
citizen contributions to the 
program . 



5. 



VETERANS 



Sect ion 
PREFERENCES 

Nothing in this Order shall 
be construed to repeal or modify 
any Federal, State, territorial, 
or local laws, rules or 
regulations creating special 



rights or preferences for 

veterans . 

Sectic 6. PRIOR ORDERS 
All prior Executive Orciers 

or portions of prior Executive 

Orders inconsistent are hereby 

repealed . 

This Order is effective 

this first day of July, 1935. 



EXECUTIVE ORDER NUMBER 19 

GOVERNOR'S COMMISSION FOR 

RECOGNITION OF STATE EMPLOYEES 

i'.iC State of North Carolina 
is noted for having loyal , 
efficient, and dedicated 
employees who provide valuable 
services to every citizen of 
this great State. The State of 
North Carolina is proud of this 
tradition of public service and 
wishes to recognize 
coiitr ibut ions made by tiiese 
employees . 

Therefore, by the authority 
vested in me by the Constitution 
and laws of North Carolina, it 
is ORDERED: 

Section 1 . Establishment 

(a) For the purpose of 
recognizing our employees, there 
is created the Governor's 
Commission for Recognition of 
State Employees. The Commission 
shall be composed of five 
members appointed by the 
Governor. The Chair of the 
Commission shall be selected by 
the Governor. Each member shall 
be appointed for a term of two 
years and may be reappointed to 
the Commission. Appointment to 
vacancies shall be made by the 
Governor for unexpired terms. 
Initial appointments to the 
Commission shall expire Juno 30. 
19S7. 

(b) The State Personnel 
Director or his designee within 
the Office of State Personnel 
shall serve as Secretary to the 
Commission . 

Section 2. Duties 
The duties of the 
Commission are: 

( a ) Each year . to 
recommend to the Governor a week 
to be proclaimed as North 
Carolina State Employee 
Appreciation Week. 

(b) Each year, to develop 
and carry out a program for 
recognizing outstanding 
employees who shall receive the 
Governor's Award of Excellence. 
This program shall include 
criteria for awards, number of 
awards, methods of competition 
and selection, and shall provide 
for participation by every state 



department 



agency, 



and 



institution . 

Section 3. Administration 



33 



NORTH CAROLINA REGISTER 



(a) The State Personnel 
Director shall provide 
administrative and clerical 
assistance to the Commission in 
the exercise of their duties. 

(b) Funds necessary to 
develop and implement programs 
of the Commission shall be 
provided by the Office of State 
Personnel and participating 
departments, with cooperation 
and concurrence by the State 
Budget Director. 

This Order shall be 
effective and shall remain in 
effect until rescinded by 
Executive Order or superseded by 
legislation . 

This order is effective 
this 7th day of August, 1985. 



EXECUTIVE ORDER NUMBER 20 
WELLNESS IMPROVEMENT FOR STATE 
EMPLOYEES 
By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ordered: 
Section 1 . ESTABLISHMENT 

(a) There is established a 
program for Wellness Improvement 
for State Employees to meet 
State Government's 
responsibility to provide an 
environment conducive to 
positive health practices for 
State employees in all areas of 
the State. State government, as 
an organization, provides an 
excellent vehicle for changing 
employees' lifestyle positively. 
Healthy employees and programs 
that promote their health can 
help reduce increasing health 
benefit costs, absenteeism. and 
decreased productivity. 
Employees subject to the State 
Personnel Act as well as those 
exempt will be covered by this 
Program . 

(b) The State Personnel 
Director is responsible for 
developing, coordinating, and 
implementing a program which 
will include, but not be limited 
to, concerns for: 

C 1 ) providing a 
working environment conducive to 
optimal health, 

(2) improving 
employees' coping skills for 
occupational and day-to-day 
demands , 

(3) improving 
employees' dietary patterns, 

( 4 ) improving 
employees' health through 
cardiovascular s trengthening 
exercises , 

(5) focusing on 
employees' responsibility for 
his or her own health, and 



(6) utilizing 
available resources within State 
government and elsewhere to 
inform and educate personnel in 
all areas of health promotion. 
Section 2. FUNCTION'S 

(a) The State Personnel 
Director shall develop a 
comprehensive Wellness 
Improvement for State Employees 
(WISE) Policy and Program for 
recommendation to the State 
Personnel Commission on or 
before November 15, 1985. 

(b) Upon approval by the 
State Personnel Commission, the 
State Personnel Director shall 
implement and maintain the WISE 
Program which will be expanded 
to cover employees exempt from 
the State Personnel Act. 

(c) The WISE Program will 
facilitate a combination of 
educational, organizational, and 
environmental activities 
designed to support behaviors 
conducive to the positive health 
of employees . 

Section 3. ADMINISTRATION 

(a) Each agency head shall 
designate one employee as the 
WISE Program Coordinator to be 
responsible for implementation 
of the Program within the agency 
and development of additional 
healthful practices necessary to 
meet special situations and 
needs that arc unique to a 
particular agency and its 
employees. In addition, an 
advisox-y committee made up of 
these representatives shall be 
established. The names of the 
above-mentioned individuals are 
to be forwarded to the State 
Personnel Director within 45 
days from the date of this 
order . 

(b) The State Personnel 
Director shall be responsible 
for establishing lines of 
communication with the 
individuals named by the agency 
heads . The Director shall also 
be responsible for coordii. n t ing 
needed training and technical 
assistance with the various 
resources that have been 
identified . 

(c) Existing employee 
groups already practicing 
healthful activities within 
State government, are to be 
identified and incorporated into 
the WISE Program . 

Section 4. EVALUATION 

(a) The evaluation will 
focus on the manner in which 
program activities are being 
carried out as well as immediate 
effects and ultimate outcomes of 
the Program. 



NORTH CAROLINA REGISTER 



39 



tliis 
1935, 



This Order is 
third day of 



effect ive 
September , 



EXECUTIVE ORDER NUMBER 21 

STATE FAMILY PLANNING ADVISORY 

COUNCIL 

By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina it is ORDERED: 

Section 1 . I hereby 
establish the State Family 
Planning Advisory Council . to 
comply with Federal 
recommendations in accordance 
with Title X. Public Health 
Service Act that an advisory 
body consisting of consumer and 
agency representatives provide 
on-going input to the 
administration of Title X grant 
funds. The Council shall be 
advisory to the Family Planning 
Branch. Division of Health 
Services. North Carolina 
Department of Human Resources. 

Section 2. The State 
Family Planning Advisory Council 
shall consist of not more than 
30 members who shall be 
appointed by and serve at the 
pleasure of the Secretary of the 
Department of Human Resources. 

Section 3. This Order 
shall become effective 
immediately and shall remain in 
effect until June 30. 1909, 
unless terminated earlier or 
extended by further Executive 
Order . 

Done in Raleigh, North 
Carolina, this third day of 
October, 1935. 



EXECUTIVE ORDER NUMBER 22 
TO IMPLEMENT CERTAIN ECONOMIES 

IN NORTH CAROLINA 
STATE GOVERNMENT TO RESPOND TO 
FEDERAL LEGISLATION REQUIRING 
A FEDERAL BALANCED BUDGET 
The United States Congress 
has enacted the 

Grnmm-Rudman-Holl ings balanc ed 
budget amendment to the federal 
debt ceiling limit bill 
IRL-99-177) requiring the 
federal government to reach a 
balanced budget by the fiscal 
year 1991. Implementation of 
said Gramm-Rudman-Hollings 
amendment may reduce the federal 
budget authority for programs in 
North Carolina bv an amount 
exceeding $200 million during 
fiscal years 1906 and 1987. The 
Governor. as Director of the 
Budget, has the responsibility 
to maintain needed services 
within a balanced state budget 
during each fiscal period. NOW, 
THEREFORE, by authority vested 



in me as Governor by the 
Constitution and laws of the 
State of North Carolina, IT IS 
ORDERED : 

Section 1 . Effective 
January 3, 19S6, and until 
further notice, vacant positions 
in the Executive Branch of State 
Government, except those for 
which prior commitments have 
been made. may not be filled 
without prior written approval 
of the Office of State Budget 
and Management . This Order 
shall not apply to the employees 
of the 141 North Carolina local 
public school units and tiie 58 
community colleges and technical 
institutions, nor shall it apply 
to those employees exempt from 
the State Personnel Act within 
the 17 educational institutions 
of the University of North 
Carol ina . 

Section 2. This Order 
shall become effective on 
January 3, 1936 and shall remain 
in effect until rescinded by 
Executive Order. 

This the 3th day of 
January, 1986. 



EXECUTIVE ORDER NUMBER 23 
GOVERNOR'S COUNCIL ON ALCOHOL 
AND DRUG ABUSE 
AMONG CHILDREN AND YOUTH 
By the authority vested in 
me as Governor by the 
Constitution and laws of North 
Carolina, it is ORDERED: 
Section 1 . ESTABLISHMENT 

(a) There is established a 
Governor's Council on Alcohol 
and Drug Abuse Among Children 
and Youth. 

(b) The Council shall 
consist of not more than twenty 
(20) persons who shall be 
appointed by the Governor. The 
Governor shall designate the 
chairman of the Council. Ail 
Council members shall serve at 
the pleasure of the Governor. 

(c) The persons appointed 
shall be citizens who have 
demonstrated interest, 
involvement or expertise in 
children and youth issues 
related to prevention, 
intervention and treatment of 
alcohol and drug abuse. 
Section 2. FUNCTIONS 

(a) The Council is 
authorized to meet regularly at 
the call of the Chairman, the 
Governor. or the Secretary of 
Human Resources. 

(b) In fulfilling its 
undertaking, the Council shall 
have the following duties 
relating to alcohol and drug 
abuse among children and youth: 



40 



NORTH CAROLINA REGISTER 



( 1 ) Review the 
General Statures of North 
Carolina applicable to substance 
abuse, including criminal and 
service delivery legislation and 
make recommendat ions concerning 
needed changes; 

(2) Review and 
recommend mechanisms for the 
coordination of state ancj local 
resources for addressing 
identified needs; 

(3) Conduct public 
hearings and advise the Governor 
and other appropriate state 
government departments and 
agency heads of the result and 
recommendations of the Council; 

(4) Encourage local 
areas to identify an existing 
board, council or commission to 
mobilize res rces to address 
substance abuse problems among 
this population; 

(5) Encourage local 
boards, councils or commissions 
to develop an implementation 
plan to meet identified needs of 
this target population; 

(6) Assist local 
boards, councils or commissions 
in identifying model prevention, 
intervention and treatment 
efforts ; 

(7) Encourage program 
activities that increase public 
awareness of youtli substance 
abuse and strategies to decrease 
the problem, and 

(0) Other such duties 
as assigned by the Governor or 
the Secretary of Human 
Resources . 
Section 3. ADMINISTRATION 

(a) The heads of the State 
departments and agencies shall, 
to the extent permitted by lav;, 
provide the Council information 
as may be required by the 
Council in carrying out the 
purposes of this Order. 

(b) The Department of 
Human Resources shall provide 
staff and support services as 
directed by the Secretary of 
Human Resources. 

(c) Members of the Council 
shall serve without 
compensation, but may receive 
reimbursement contingent on the 
availability of funds for travel 
and subsistence expenses in 
accordance with state guidelines 
and procedures . 

(d) The Council shall be 
funded by the Department of 
Human Resources and 
contributions received from the 
private sector. 

Section 4. REPORTS 

(a) The Council will 
present an annual report to the 
Governor and the Secretary of 
Human Resources. 



(b) Reports of 

recommendations may be submitted 
to the Governor and Secretary of 
Human Resources as deemed 
appropriate by the Chairman. 
Section 5. IMPLEMENTATION 

The Office of the Secretary 
of Human Resources will review 
reports and recommendations and 
take appropriate action. 
Section 6. PRIOR ORDERS 

All prior Executive Orders 
or portions of prior Executive 
Orders inconsistent herewith are 
hereby repealed. This Order is 
effective the 29th day of 
January, 1936. 



EXECUTIVE ORDER NUMBER 24 
GOVERNOR'S PROGRAM TO STRENGTHEN 
HISTORICALLY BLACK COLLEGES 
By the authority vested in 
me as Governor by the 
Constitution and lavs of North 
Carolina, it is ORDERED: 
Section 1. ESTABLISHMENT! 

(a) There is 

established the Governor's 
Program to Strengthen 
Historically Black Colleges. 

lb) The program to 
Strengthen Historically Blacic 
Colleges shall be administered 
by the Senior Education Advisor. 

(c) The purpose of 
the program to Strengthen 
Historically Black Colleges is 
to advance the developnent of 
human potential in our State, to 
strengthen the capacity of 
Historically Blacic Colleges and 
Universities, to provide quality 
education, and to further 
est.-' ' ish the role and value of 
Historically Black Colleges and 
Universities to our State. 
Section 2. FUNCTIONS 

(a) The program shall 
seek to achieve a significant 
increase in the participation by 
Historically Blacic Colleges and 
Universities in State sponsored 
programs . 

(b) The program shall 
be administered to identify, 
reduce, and eliminate barriers 
which may have inadvertently 
resulted in reduced 
participation i:- . and reduced 
benefits from State sponsored 
programs by Historically Black 
Collet ;s and Universities. 

(c) The program shall 
seek to involve business and 
industry in strengthening 
Historically Clack Collenes. 
Section 3. ADMINISTRATION 

(a) Each Cabinet 
Department and Executive agency, 
defined in G.S. 1433-6, 
excepting the Department of 
Community Colleges, hereinafter 
referred to as Designated State 



NORTH CAROLINA REGISTER 



41 



Agencies, shall establish an 
annual plan to increase the 
ability of Historically Black 
Colleges and Universities to 
participate in State sponsored 
programs . These plans shall 
have measurable objectives of 
proposed agency actions and 
shall be submitted at such time 
and in such form as the Governor 
shall designate. 

(b) In consultation 
with the Designated State 
Agencies, the 5011107' Education 
Advisor shall under take a review 
of these plans and develop an 
integrated Annual State Plan for 
assistance to Historically Black 
Colleges and Universities for 
consideration by the Governor 
and the Cabinet. 

( c ) The Senior 
Education Advisor shall provide 
each President and/or Chancellor 
of a Historically Black College 
or University in North Carolina 
and the President of the 
University of North Carolina an 
opportunity to comment on the 
proposed Annual State Plan prior 
to its consideration by the 
Governor . 

(d) Each Designated 
State Agency shall submit to the 



Senior 



Education 



Advisor 



:fr orts 
the 



mid-fiscal year progress report 
of its achievement of the 
objectives set forth in its plan 
and such agency shall at the end 
of the fiscal year submit to the 
Senior Education Advisor an 
annual performance report which 
shall specify agency performance 
of its measurable objectives. 

(e) The Secretary of 
Commerce, to the extent 
permitted by law, shall 
stimulate initiatives by private 
sector businesses and 
institutions to strengthen 
Historically Black Colleges and 
Universities, including e 
to further improve 
management, financial structure 
and research of such 
Historically Black Colleges and 
Universities . 
Section 4. REPORTS 

Ca) The Senior 
Education Advisor after 
compliance with the requirements 
of this order, shall submit to 
the Governor and the Cabinet an 
Annual State Plan not later than 
June 30 of each year this order 
is in effect . 

Cb) Senior Education 
Advisor shall submit to the 
Governor an annual state 
performance report on each 
Designated State Agency's 
compliance with the Annual State 
Plan. This report will include 
the performance appraisals of 



eacli Designated State Agency and 
will also include 

recomnendat ions for 

improvements . 
Section 5. IMPLEMENTATION 

(a) Prior to the 
development of the first Annual 
State Plan, the Senior Education 
Advisor shall supervise a 
special review by every 
Designated State Agency of its 
programs to determine the extent 
to which Historically Black 
Colleges and Universities are 
given an opportunity to 
participate in State Sponsored 
Programs. The Designated State 
Agencies will examine unintended 
regulatory barriers, determine 
the adequacy of the announcement 
of programmatic opportunities of 
interest to these collages and 
identify ways of increasing 
equity and advantage. 

t b ) The special 
review shall take place not 
later than April 30, 1936. 

tc) Designated State 
Agencies shall submit their 
annual plans required by this 
order to the Senior Education 
Advisor not later than May 15, 
1986. 

(d) The first Annual 
State Plan for assistance to 
Historically Black Colleges and 
Universities shall be delivered 
to the Governor and the 
Governor's Cabinet by not later 
than June 30, 19C6. 
Section 6. PRIOR ORDERS 
All prior Executive Orders or 
portions of prior Executive 
Orders inconsistent herewith are 
hereby repealed. 

This Order is effective the 13th 
day of February, 19o6. 



EXECUTIVE ORDER NUMBER 25 
REGIONAL F0LICY FOR NORTH 
CAROLINA 
In 1970, this State 
delineated boundaries for 
multi-county planning and 
development regions and in 1971 
a Lead Regional Organiza t ion was 
designated for each region to 
establish goals and objectives, 
and serve as the regional agent 
in dealing with state and 
federal agencies. Thereafter, 
state agencies were instructed 
to utilize the Lead Regional 
Organization for planning » 
implementing, and coordinating 
programs which impact local 
governments. The concepts of 
multi-county planning regions 
and the Lead Regional 
Organization policy have been 
very effective in fostering 
intergovernmental coordination 
and cooperation and this 



4 2 



NORTH CAROLINA REGISTER 



Administrabion is committed to 
close cooperation with local 
governments and their agencies. 
Therefore. by the authority 
vested in me as Governor by the 
Constitution and laws of North 
Carolina, it is ORDERED: 
Section 1 . ORGANIZATION 

(a) A single Lead 
Regional Organization shall 
continue to exist in each of the 
eighteen multi-county planning 
development regions or such 
larger or smaller number of 
regions as may be hereinafter 
delineated by the Department of 
Administration . 

(b) The governing 
board of each Lead Regional 
Organization's membership 
composition, but such Lead 
Regional Organizations are urged 
to limit policy board 
representation to elected 
officials of the member local 
governments . 

Section 2. FUNCTIONS 

(a) Lead Regional 
Organizations, whether Councils 
of Governments or Economic 
Development Districts shall have 
the same powers and duties 
specified for Councils of 
Governments in the General 
Statutes of North Carolina. 
Section 3. ADMINISTRATION 

(a) In dividing the 
State for administrative and/or 
service delivery purposes. State 
agencies shall make subdivisions 
coterminous with the Lead 
Regional Organization boundary 
lines, or witli combinations of 
such, unless it can be 
demonstrated that strict 
conformance would result in 
inefficiencies, or that the 
proposed subdivision bears no 
relat ionship to regional plans 
or activities. 

(b) State agencies 
desiring to eliminate, 
re-direct, or begin programs 
which impact local governments 
through Lead Regional 
Organizations are hereby 
directed to submit any proposed 
change or modification to the 
Local Government Advocacy 
Council for an advisory opinion 
prior to taking action. New 
programs involving service 
delivery through the Lead 
Regional Ornnnizations must have 
the approval of local 
governments affected. 

(c) State financial 
support to Lead Regional 
Organizations should be limited 
to grants to carry our specific 
tasks which arc imposed by State 
government, or tasks which 
involve a coordinated state-wide 
activity which will be 



beneficial to both State and 
local governments. State funds, 
if provided, shall not be 
utilized for general 
administrative support, nor 
shall they be utilized to 
supplant local funds. 

Cd) The determination 
of personnel procedures for Lead 
Regional Organizations shall be 
left to the discretion of local 
governments, and no State agency 
shall impose its personnel 
procedures on the Lead Regional 
Organizations. Nothing in this 
section shall preclude the 
establishment of reasonable 
minimum education and experience 
standards for positions funded 
by a State agency, provided that 
such standards shall be no more 
stringent than those in use by 
State or Federal agencies for 
comparable positions. The Lead 
Regional Organizations shall 
have complete autonomy in 
filling such positions from 
among applicants meeting those 
reasonable minimum standards. 
Section 4. MODIFICATION OF 
REGIONAL BOUNDARIES 

(a) The Secretary of 
the Department of Administration 
is hereby charged with revising 
and implementing > if necessary, 
the existing guidelines dealing 
with the changing of regional 
boundary lines, in accordance 
with the following: 

(b) Doundary changes 
shall not be considered unless a 
petition for change is received 
from one or more county boards 
of commissioners or from the 
governing bodies of one or more 
municipalities whose combined 
populations represent at least 
50'-: of the county population. 

boundary change shall bo n\ le 
until after notice of such 
proposed change is given, and 
sufficient opportunity for 
public comment is provided. 

(c) Any request for 
boundary change shall be acted 
upon within ninety (90) days of 
the receipt of a valid petition. 

(d) Approved boundary 
changes shall be effective on 
July 1st of the following year, 
and must be announced at least 
ninety days prior thereto. 

(e) A request for 
change which is not approved by 
the State shall not be 
reconsidered for a minimum 
period of three years from the 
date of disapproval . 

Section 5. PRIOR ORDERS 
All prior executive orders or 
portions of prior executive 
orders inconsistent herewith arc 
hereby repealed. 



NORTH CAROLINA REGISTER 



43 



This order is effective this the 
21st day of February, 1986. 



44 NORTH CAROLINA REGISTER 



JUDICIAL ORDERS 



STATE OF NORTH CAROLINA 

Judicial Department 

Joseph Branch Chief Justice 

TO ALL TO WHOM THESE PRESENTS SHALL COME - GREETING: 

Reposing special trust and confidence in your integrity and 
knowledge, and by virtue of authority vested in me by lav/, I do by 
these presents pursuant to G.S. 7A-752 appoint appoint ROBERT ARTHUR 
MELOTT, Director of the Office of Administrative Hearings for the term 
ending June 30, 1989, and do hereby confer upon you all the rights, 
privileges and powers useful and necessary to the just and proper 
discharge of your duties as Director of the Office of Administrative 
Hearings . 

In Witness Whereof, I have hereunto signed my name and affixed 
the Seal of the Supreme Court of the State of North Carolina at 
Raleigh, North Carolina, this 23rd day of December 1985. 



s /Josep h B ranch 

Chief Justice of the Supreme 

Court of North Carolina 



NORTH CAROLINA REGISTER 45 



ADMINISTRATIVE ORDERS 



STATE OF NORTH CAROLINA 
WAKE COUNTY 



In the Office of 

Administrative Hearings 

ORDER 



Under the provisions of G.S. 147-28 an official seal is hereby 
adopted for this Office for the purpose of attesting and 
authenticating papers and records. The seal is described as f ollows : 

The figure of Minerva (Liberty), helmetcd and holding in her 
right hand a pole bearing a liberty cap. Her extended left hand 
grasps a large scroll with the word Const itut ion emblazoned in capital 
letters. Inscribed on tiie platform supporting the figure is the Latin 

phrase In Lecribu s S alus (Safety in the Laws). Surrounding the seal 

are the words "State of North Carolina" and "Office of Administrative 
He 



ar inqs' 
The 



seal is embossed in the max-gin hereof. 



a readiness to do battle to obtain or defend 
is a famous symbol of freedom. It is a copy 
which was given to a freed slave in ancient 
both American and French revoluntionaries in 
The staff is the protective weapon of 



This seal, except for the words surrounding it. is a replica of 
the original (1779-1794) Great Seal of the State of North Carolina. 

In addition to its historic significance, this seal is highly 
appropriate for this Office. 

The helmet indicates 
freedom. The liberty cap 
of the Phrygian headdress 
Rome. It was adopted by 
opposition to monarchy, 
biblical tradition. The symbolism is apt. 

The inscription on the scroll is significant because the 
authority for this Office is found in the Constitution of North 
Carolina. N. C. Const. Art. IV, Sec. 3. Moreover, this is an 
independent agency under the Constitution. N. C. Const. Art. III. 
Sec. 1 1 . 

The motto is particularly meaningful in that the essential 
function of this Office, in both its Rules and Hearings Divisions, is 
to assure the safety of the people by requiring tiiat agency rules be 
adopted and applied in compliance with the laws enacted by the 
representatives of the people, the General Assembly. 

This the 3rd day of January, 1986. 




sZBpbe rt A. Me lott 

Director and Chief Hearing Officer 



A 6 



NORTH CAROLINA REGISTER 



STATE OF NORTH CAROLINA 
Office of Administrative Hearings 
TO ALL TO WHOM THESE PRESENTS SHALL COME - GREETING: 

I, Robert A. Melott, Reposing special trust and confidence in the 
integrity and knowledge of BEECHER REYNOLDS GRAY now, by virtue of the 
authority vested in me by lav; I do hereby appoint him Hearing Officer 
and confer upon him all of the rights, privileges and powers useful 
and necessary to the just and proper discharge of his duties. 

In Witness Whereof, I have hereunto signed my name and affixed 
the Seal of the Office of Administrative Hearings of the State of 
North Carolina, at Raleigh, North Carolina, this the 1st day of March 
1986. 

s/Rohe rt A. Me lott 
Chief Hearing Officer 



NORTH CAROLINA REGISTER 47 



STATE OF NORTH CAROLINA 
Office of Administrative Hearings 
TO ALL TO WHOM THESE PRESENTS SHALL COME - GREETING: 

I, Robert A. Melott, Reposing special trust and confidence in the 
integrity and knowledge of FRED GILBERT MORRISON, JR. now, by virtue 
of the authority vested in me by law I do hereby appoint him Hearing 
Officer and confer upon him all of the rights, privileges and powers 
useful and necessary to the just and proper discharge of his duties. 

In Witness Whereof, I have hereunto signed my name and affixed 
the Seal of the Office of Administrative Hearings of the State of 
North Carolina, at Raleigh, North Carolina, this the 3rd day of March 
1906. 



s/Ro bert A. M elott 
Chief Hearing Officer 



40 NORTH CAROLINA REGISTER 



STATE OF NORTH CAROLINA 
Office of Administrative Hearings 
TO ALL TO WHOM THESE PRESENTS SHALL COME - GREETING: 

I, Robert A. Melott, Reposing special trust and confidence in the 
integrity and knowledge of ANGELA REBECCA BRYANT now, by virtue of the 
authority vested in me by the law I do hereby appoint her Hearing 
Officer and confer upon her all of the rights, privileges and powers 
useful and necessary to the just and proper discharge of her duties. 

In Witness Whereof, I have hereunto signed my name and affixed 
the Seal of the Office of Administrative Hearings of the State of 
North Carolina, at Raleigh, North Carolina, this the 19th day of March 
1986. 



s/Robert A. Mel o 1 1 
Chief hearing Officer 



NORTH CAROLINA REGISTER 49 



STATE OF NORTH CAROLINA 
Office of Administrative Hearings 
TO ALL TO WHOM THESE PRESENTS SHALL COriE - GREETING: 

I, Robert A. Melott, Reposing special trust and confidence in the 
integrity and knowledge of THOIIAS R. WEST now, by virtue of the 
authority vested in me by law I do hereby appoint him Hearing Officer 
and confer upon him all of the rights , privileges and powers useful 
and necessary to the just and proper discharge of his duties. 

In Witness Whereof, I have hereunto signed my name and affixed 
the Seal of the Office of Administrative Hearings of the State of 
North Carolina, at Raleigh, North Carolina, this the 4th day of April 
1986. 



^/ Robert A. Mel o tt 
Chief Hearing Officer 



50 NORTH CAROLINA REGISTER 



STATEMENTS OF ORGANIZATION 

OFFICE OF ADMINISTRATIVE 

HEARINGS 



Office of 
Hearings is an 

quasi- judicial 
is one of the 

administrative 
state government 

Article III, 

North Carolina 



The 
Administrative 
independent , 
agency. It 
twenty-five 
departments of 
authorized by 
Section 1 1 of the 
Const itut ion . 

The Office of 
Administrative Hearings has two 
primary responsibilities: 

(1) To compile and publish 
the North Carolina 
Administrative Code and the 
North Carolina Register; and 

(2) To provide independent 
hearing officers to preside in 
contested cases under the 
Administrative Procedures Act 
and thereby prevent the 
commingling of the legislature, 
judicial and executive functions 
in the administrative process. 

The head of the office of 
Administrative Hearings is it's 
Director who is, ex of ficio, 

Chief Hearing Officer. The 
office is organized into three 



divisions: Rules; Hearings; and 
Administrative. The Rules 
Division carries out the 
compilation and publication of 
rules. The Hearings Division is 
responsible for the processing 
of contested cases from the 
filing of a petition through the 
forwarding of the record to the 
appropriate agency. 
Hen 'gs Division has 
judicial power granted 
Article IV, Section 3, of 
North Carolina Constitution 
necessary to carry out its 
responsibilities . 
Administrative Division 
concerned solely with 
internal operation 
management of the Office 

The public may obtain 
information about and make 
submissions or requests to the 
Office of Administrative 
Hearings in person at 10 East 
Jones Sti-oet, Raleigh* North 
Carolina, by mail at Post Office 
Drawer 11666, Raleigh, N. 
27604, and by telephone 
follows : 
Administrative Division 

919/733-2691 
Rules Division 

919/733-2678 
Hearings Division 

9 19/733-2698 



The 

the 

by 

the 



The 

is 
the 
and 



C. , 

as 



NORTH CAROLINA REGISTER 



51 



PROPOSED RULES 

Office of Administrative 
Hearings 

Notice is hereby given in 
accordance with 6.S. 150B-12 
that the Office of 
Administrative Hearings intends 
to adopt and amend, regulations 
entitled General. Rules Division 
and Hearings Division. The 
purpose of the proposed 
regulations is to establish 
general office policies, 
procedures for filing for 
publication in the NCAC and the 
North Carolina Register. and 
procedures for contested cases 
conducted by Office of 
Administrative Hearings. 



The 
this 



proposed 
action i: 



effective 
August 1 , 



date of 

1936. 



Statutory Authority: Chapter 
150B of the General Statures 

The public hearing will be 
conducted at 10:00 a.m. on June 
27th at Room 150 of the Highway 
Building located on South 
Wilmington Street in Raleigh. 

Comment Procedures: Data, 
opinions, and arguments 
concerning these rules must be 
submitted by June 13. 1986 to 
the Office of Administrative 
Hearings, P. C. Drawer 11666. 
Raleigh, N . C. 27604, Attn: 
Molly Mason. 



CHAPTER 1 



GENERAL 



.0001 



form 

file 

Admi 

avai 

doll 

for 

cent 

page 

any 

Offi 

Hear 

of 

cert 

copy 

p.. . 

i di a 



COST FOR COPIES 

(a) Copies in looscl 
of any public documents 

d in the Office 
nistrative Hearings, 
lable at a cost of 
ars and fifty cents (02. 
up to ten pages and fift 
s (00.15) per page for e 
in excess of ten. 

(b) Certified copies 
public document filed in 
ce of Adininistrat 
ings are available at a c 

one dollar (CI .00 ) 
ification in addition to 
ing cost set out 
graph ^a) of this Rule. 



ear 
as 
of 
are 
two 
50) 
cen 
ach 

of 
the 
ive 
os t 
per 
the 

in 



CHAPTER 2 

Subchapter 

SECTION .0100 



RULES division 

' PUBLICATION 



0101 PURPOSE 

P u r sua nt -to Gerrcrni- St a tute 
-rSO/rr cn-ch sta'te agency s hall 



fil e all rules ami rule chan ges 
with the A6m±rc±s-brar'c±vts 

Prrrcedu res Setrtrion of the 

Attor ne y Gencra l' T , s Of f ice -so 
■tlra-t the rules ami r-trio cha ng es 
nay become edf~ £ o c fc ive aird tro- tdtat 
-tire sccti-on may ptr bl ish the 
North Garo-Hna Admin-is 



Code 



-tvre f il ing s sh-ai: 



hr. 



pr o pe r pny- 

acco r dance- rr 
this Shap- bei - : ■ 



■zxym 
:lre nrxec 



in 
in 
in 



.0102 LOCATION 

TI re Ac: 

Procedtrres Sccti on 
A t t o r n ey G e neral ' s 
xocarcd at +«■ East 6xr 
Raleig hr North Carol 
tire past arrd ernrrcrrt 
under t-lre p r o v-rtrrrrns 
+50 A are avail -sbic 
irrs-p-cct-rerrr at- titst 
The m ail i ng address i 
N . C . Bepar-fcm-cTrfc- of du 
Adnrxn d s 1 1* a tive Froced 

S e c t i o n 
P-rQ-r E-tx 629 
Raie-rg'rr North Car o li 
Tel e phon e i -fr-9+9-3- 93- 



r a t iv e 

of tho 

Gf-f-icc is 
nss S- b i ' ee t , 
rrra and aid: 
ral-c-s- -fixed 
o-f Gh aptcr 
for pu blic 
i-oca t-roiTT 



sta 2766-2 
725 



.0101 PUBLICATION CF THE NCAC 

( a ) Admin is trat ive rules 



adopted bv 


state agencies 


and 


oceupat ional 


licensing lion 


rds 


pursuant to General Stat 


ute 


Chapter 1503 


shall be filed v. 
o f A fj r. i n i s trot 


ith 


the Office 


ive 


Hear inns to 


he published in 


the 


North Carol 


ina Administrat 


ive 


Code. 

(b) Fi 


Lings for rules 


and 


rule chancres 


shall be filed 


in 


proper ph 


,' s i c a 1 form 


in 


accordance 


?ith the rules 


in 



this Subchapter . 



.0102 AVAILABILITY OF THE NCAC 

(a) The Office of 

Admin i strat ive 1 \ e ar 3 ng s h as 

a vaila bl e f o r e \ 'bl ic i n r p •: c t i o n 

all pas t a nd current r ule s filed 

under the provisions of General 



Statut e Cha pter 150B. 



( b ) Th« 



lorth 



Carol ina 



in 



Jo_forjn 



Admin. ist ra five Cod e i s available 

as fo llow s : 

co nies 

it 
1 



i 1 ) 



man imu m _c_c>_: 
JCAC 



L oosel en f 
a re a vai la bl e at a 
a s esta b 1 i s h cd i it 26 
. CO O 1 . Du e t o tli e volume of the 

Cod e . t he en t ire s et o f ru le s is 

not avail a bl e in loosel caf t o rm ■ 
"(2) The entire NCAC 



■ icne 



I- w ice 



is pu hl .i shed on in icro 

a year, March and October. fcacii 

publication is a yn jJLabJLp. at a 

cost' o f ' for-y' dc I la.rs ("? '; . 1^_ 

( c ) A cost as es f a'-- li s h : d 

in 26 NCAC 1 .0001 is chare" 



fo r cert 
NCAC . 



g at;' 



u 
the 



52 



NORTH CAROLINA REGISTER 



SECTION 



.0200 - GENERAL FILING 
REQUIREMENTS 



,0201 



ADOPTION OF RULES 



(a) An adoption 



a 
new 



completely new rule with a 
rule number . 

(b) In order to be 
acceptable for filing with the 
Attorney Gcrrer-alr'-s Off -roe Office 
of Administrative Hearings, 

all adopted rules shall be 
accompanied by a completed 
Gcrt-rf-ic-a-td-orr of Rul eiirtri-ribrrg 
Submi ssion for Filing 

form . 

(c) The original and one 
copy of the rule as adopted 
shall be filed in the 
Adprirnrs~brtr t iv e Proce dures 
Setrfa i o n of tiTe A-ttornoy 
GcrrcT-alr'-s Of free Office of 
A d mini s t rativ e 



Hearings 



The 



ori ginal s hal l be in the oropc r 

for'n required by Rule .0402 of 

this S u bchapter. 

( d ) I f an a do pted ru le i s 

identica 1 to the pro pos ed ru le 

Carolina 
in G.S. 



published in the North 

Register a s provided 



15UB-1 2, tl ie filing shall be 



accompanied 
tiie volume . 



b y a stat ement or 

js s ue an d page or 

pages of the notice pu blic at i on . 
( e ) If tlie adopted rule 



differ: 



•on 



the 



p ro g osed rule pub li sh od in 
No rth Carolina Regist e r, 



tlie 



filing 



cop y of 



shall 
tii 



be 



ccom pr. nie d by a 
proposed rule as 



s ubm itted fo r pu blication no ting 

tli e c hanges between the pro posed 

ru le and tli e a d opted rule a nd_a 

sta te ment of the v olum e, is sue 



an d p age 
publ ic a t ion . 



pages o.l 



the notice 



(f J 

proposed 


If publication of the 
rule in the North 


Carolina 


Register was not 


regu ired . 


tlie filing shall be 


acconnlished as set out in 



Paragra ahs, (a) 

this Rule. 



( k) and (c) of 



.0202 
(a) 
change to 
amendment 

(b) 
acceptable 



AMENDMENTS TO RULES 
Deletion, addition 
an existing rule is 
to the rule . 
In order to 
for filing with t 



Atto rney Gener al ' s Off-ice Of f i 
of Administra tive Hea rin gs, 

all amended rules shall 
accompanied by a 6-crt 
tr£ Rtrfrcmarlring Submission f 



or 
an 

be 
he 
ce 



be 



Fil ing 
form . 

(c) The original of the 
rule as amended shall be filed 
with the AdrTMri-trTrtthTe 
Procedure-- Section erf the 
Attorney Gencxai J -r Office Office 

of Admi n is trot ive Hearings . 1 l ie 

original shall be in proper form 



3? re quired _bv R ule . 0402 o f 

this Stibcha pter . 

id) I f a i t amended rule i s 



identical to 



1211 ill-i s hed in 
Register as 



the 

the 



propose d ru le 
North Carol ina 
v'ided ir. G . S . 



150B-1 2. 
ac com panied 
the volume . 



by 



a 



i n g sh all 
tat 



'HIGT 



oi- 



ls sue 



pages of tli e 



(e) 

ad opted 



If 



a n d p ag e or 
n otice publication, 
amended 



m 



riii 



differ 



from 



as 
the 

propos ed amen dm ents pu blished in 
the North Carol i n a Re gis to r ■ t he 

filing sh all b e accompanied b y a 

copy of tiie p roposed a mend \ nents 

as submitted for publicatio n arid 

a c o ny of tiie amended rul e as 

a dopte d with c h anges from t h e 



p roposed r.mendm ent 
by striking 



th roug h 



iden t i f i e d 
t 



del< 



a 



portion 

and highli ghting 

in 



in a contrasting c ol< 



added 



different 



contra; 



color . 
volume , 



_and a_ 

issue 



po ft io ns 
ting 
stateme nt of th e 

and page o r par' 



of tiie nc 


it ice 


publ ica t 


ion . 


f 






(f ) 
sed 


it 


p ub 1 i c a t i 


on o 


the 


p r o P o 


amen 


dment in 


the 


N 


orth 


Carol 


i na 


n 


sgister 


W a s 




not 



requ ir eel , each amended rule 
shall be accompanied by the most 
recent line-numbered copy of the 
existing rule with distinctive 
revisions and editorial markings 
showing each deletion, addition 
or change . 

( g ) If publication of .the 

p ropo sed amendments in the North 

Carol ina Re gist e r w_a r, r ot 

"be 
in 



req ulr e d, t i le filing shall 



oul : 

lb) . (c) and ( f ) 



accomplished a: 

Parag raphs (a), 
of th is Rule . 



.0203 REPEAL OF RULES 

(a) A repeal of a rule is 
tlie deletion of the entire text 
of a rule. When a rule is 
repealed, that rule number can 
not be used again. Tiie number, 
catchline, and final history 
note will remain in the North 
Carolina Administrative Code 
permanently for publication and 
reference purposes. 

(b) Tiie original and one 
copy of a statement of repeal 
shall be filed with tlie 
Ad rin is t ra irrTe Pro cedrre-s 
Section erf tire Attorney 
Genera JrHs Office 0ffi.ee of 



Ad 


minis tra 


t ive 


Hea 


r i 


ngs . 




Th 


r. 


or 


iginal s 


hall 


be i 


n 


n r o v e 


r 


for 


m 


a s 


require 


d bv 


Rul 


Q 


. Q* 


iO 


2 o 


f 



this S ubcha n ter . 

(c) Ln order 

acceptable for filing 



Attorney Generrrl 

of A dminst rative 

statement of a repeal 
siiall be accompanied 
G cr-ti freation 
Submiss ion for 



to be 

with tlie 

t f fie e Office 

1 'oari njjSi a 

of a rule 

by a 

of Rivi-em-nicing 

Fil ing form. 



NORTH CAROLINA REGISTER 



53 



(d) The statement of a 
repealed rule should contain 
only an introductory statement, 
rule number. catchline, and 
history note. No text will 
remain within the rule. 

.0204 REQUEST FOR TRANSFER 

(a) An agency may request 
that one or more of its rules be 
recodified . 

(b) The request for 
recodification shall be 
submitted to the AdiTi-rri-s+rtrb-i-Tre 
Proccdua-es Sec t ion of tire 
Attorney Gcner s i-'-s Office Office 
of A d mi nistrr-t ive Hearing s on e 
Ocrtrif-icetiorr of Trtmtrfer 
Transfe r an d Recodif icat ion form 
and a table of contents setting 
out the catch! ine and number for 
each rule for each section 



affected 
transfer . 

Transfer 
trtarr.p of 
Review 
•to 



by 



the requested 



fttt C e rti-fioa tion of 

forms ntusf iretrr the 

the Gotctito : 1 ' s Rtrics- 

Go7irri.--rsion off:' 

snb^. irs-s i cn 





tre-tire 

of the 
Of fi cer 



.0205 SUBMISSION FOR 
FILING FORM 

(a) The completed 

6 rt i fication of Ruxcrrrakirrg 
Submis sion for Fil ing form 
certifies that the rule being 
filed has been officially 
adopted, amended, or rc;.icaled; 
identifies the rule by citation 
in the North Carolina 
Administrative Code, and 
indicates under what authority 
the rule has been adopted. 

•fb-> Axi c e v t ifiorrfion 
forms- trcccm parrying rtrxes intra t 
benr tiTO s-trcrmp of the 6oTcrnor- L 3 
Ruic-s R e view office before t]ie 
rcrl-cs can bo accepted for fifing 
in the Ad ministra t i ve Procedures 
Section of tire Attorney 
6 oner ajb^-s Of fic e , 

( b .) More than one rule may 
be listed on a single form if 
the same procedure (adoption, 
amendment, or repeal) is being 
done on several rules in the 
same chapter for the same reason 
and the filing dates and 
effective dates are the same. 



.0206 CHANGES IN 
OR HISTORY 
Request 
catchlines or 
be made by 
Ath n iit i st r a t i ve 
Section Office 
Ilea ri nqs . 

This memo must clearly 
identify the ciianges including a 
full citation. 



CATCHLINES 

NOTES 

for changes in 

history notes enn 

memo to tlie 

Procedures 

o f Admin jr. fc r a t ive 



.0207 RULE SUMMARIES 
For distribution 
publication purposes, t 
Attor n ey G oner air Chief Heari 
ff ice r of the Office 
Administrative Hearings 



nd 
he 

na 

of 



ha: 



statutory authority to summarize 
rules which he judges would be 
impracticable to distribute or 
to publish in full. An agency 
with rules which it believes 
would be impracticable to 
distribute or publish may 
request that the Attorney 
Scnorai Chi ef Hearing O ff ice r 
examine such rules. If he 
determines tliat the submitted 
rules are inappropriate for 
distribution or publication, he 
may allow the agencv to draft a 
and file the full 
in their existing 
other form as he 



summary rule 
rule or rules 
form or such 
may specify. 



.0 

mat 

sub 

but 

som 

mat 

an 

asi 

wor 

don 

The 

sur 

sub 

as 

man 

mer 

cla 

re 

of 



203 ILLUSTRATION'S/NOTES 
An agency may inci 
erial which is not 
stantive portion of the r 

is an illustration 
ething in the rule 



erial which is meant only 

illustration must be 
de by preceding it with 
d "Note:". This should 
e after the text of the ru 
agency is advised to m 
e it lias not included 
stantive portion of the r 
an illustration in t 
ncr . Illustrations 
ely examples 
r if icat ions which, when 
d, do not change the mean 
the rule . 



ude 

a 

ule 

of 
The 

as 
set 
the 

be 
lc. 
ahe 
any 
ule 
his 
are 

or 
not 
ing 



.0209 REFUSAL OF RULES 

(a)The Attorney Jcncr? 
Of fice Offi ce of Ad sini str a : 
Hearings will refuse to ace 
for filing any proposed ru 
which do not moot 
requirements of this Chapter 

Subcn a ater . 

(b) If the filing is not 
acceptable, it will be returned 
to the agency with an indication 
of the changes needed. 

.0210 ACCEPTANCE OF RULES 
FILED 

(a) When an action is 
accepted for filing by the 
Attorney Gene ral T s Office Off ice 
of ftd mi uis trr> t ive Hearings, the 
agency will be sent a completed 
copy of the G'ertif icat ion on 
Ralcnralcing Sub miss i on for Fil ing 

form which indicates tliat the 
action is acceptable for filing. 

(b) When the rule has been 
'printed by the Attorney 
Ge neral's Office Office of 



54 



NORTH CAROLINA REGISTER 



Adm inistra ti ve Hear incr; 



agency will receive 
line-numbered copy of 
document at no charge . 



the 
one 
the 



SECTION .0300 - TEMPORARY 
RULEMAKING 

.0301 FILING TEMPORARY RULES: 
ADOPTIONS : AMENDMENTS : 
REPEALS 
In order to be acceptable 
for filing with the Atfo-nrey 
Gentrrni-'-s Off-ice O ffice o f 
Adm i n istrative Heari ngs, all 
temporary adoptions, amendments, 
or repeals of rules shall be 
accompanied by a completed 
Gcrf-ifirca-lrion of Tempe r ar y 
R ul e ma king Submis sion for F iling 
form, a Certificate of Need, a 
proposed Notice of Public 
Hearing j and the proper number 
of copies required by Rules 
.0201, .0202, and .0203 of 
this Glmp-trcr Subchapter . 

.0302 SUBMISSION FOR FILING 
FORM 

Each temporary rule shall 
be filed with a Gertrrff cat-ron of 
Tcmpro rtrry R a.l em s -icing Sub mission 
for Fi ling form. More than one 
temporary rule may be included 
on the same ctnrfc-xfieaf-xon form 
if they are filed for the seme 
reason, to be effective on the 
same date, and for the same 
period of time . 

-Hr+ Aii c-crfifi-trrrt-i-on 
f omrrs zrcc-ompa n yirrg -tciapor-rrry 
rti le s siraii b~ax* tiro ~t-rrmp of 
■the/ Gover nor ' s RirJrc-s Rcvxer; 
Gomm-rs-rrron Office b e f o re •bite 
rul e s ctm b-e accepted for filin g 
wxrh ■fcfoe Adrrii-nrsfTra - c-i-'re 
Prrocedtrre-s- Sect i on- of the 
At-fc-omcy Scrrer-aTr-'-s Off ic e . 



SECTION 



0400 



PHYSICAL FORMAT 



.0401 GENERAL TYPING 
INSTRUCTIONS 
Rules submitted to the 
A-bto-rrrcy Genomic O ffic e Offic e, 

o f Administr ative He arin gs for 

filing shall be typed, one rule 
to a page, except two or more 
consecutive rules within a 
single section, subchapter, or 
chapter which are filed at the 
same time, may be typed on the 
same sheet and continued from 
one page to another: 

(1) on an 8-1/2 by 11 inch 
sheet of paper (no letterhead, 
carbon copies or onion-skin 
acccp t ed ) ; 

(2) on one side of the 
sheet only, with a one inch 
margin on all sides (65 space 
1 ine ) ; and 



(3) 
spacing , 
s tandard 
type of 

The sheet may 
around in the 
accommodate wide 
or figures may 
the body of a rule only if t 
can be typed within the G5-sp 
maximum (including all bl 
spaces ) . 



with pica type, 
and black ink, 
type only; do not 
an unusual nature . 

not be tur 

typewriter 

charts . Cha 

be included 



uca 
use 
use 

ned 
to 
rts 
in 
hey 
ace 
ank 



[NAL COPY OF RULES 

; filed must be 

an original copy 

and 



.0402 ORIG] 
All rule: 
accompanied by 
of the rule . 

( 1 ) Adopt ions 
Amendments 

(a) The original copy 
shall contain an introductory 
sentence identifying the 
citation and the action being 
taken . 

(b) The rule shall be 
in proper physical form as it 
should read upon filing. 

(c) Each rule shall 
be followed by a history note 
which contains the Statutory 
Authority, effective date, and 
any previous rcadoption or 
amendment dates if applicable. 

(2) Repeals 

(a) The original copy 
shall contain an introductory 
sentence identifing the citation 
of the rule and the 
action being taken. 

(!)) Repealed 
will contain the rule 
rule name, followed 
complete history note noting ti 
repealed effective date. 



repeal 
rules 



nui 
by 



iber , 
the 
ic 
No 



text 
copy 



13 
Of 



J-sy shall 



on the 
aled rule . 
Repealed 
■ ■: combined 



snovm 

rcD 
(c) 



original 

rules 
with a 
single history note a.-r ioittt tss 
if the rules are consecutive 
numerically and the effective 
dates and proposed repealed 
dates arc identical. Any other 
trombiriia tri-orr mn=f be -ppr-oved by 
•the Attorney Gc-ircral ' s Srf f ice; 



.040 

the 
Offic 

1 1 oari 

an 

immed 

This 

conta 

n urn be 

the 

vo lum 
not ic 

iii R'i 

this 

in tit 



INTRODUCTORY STATEMENT 
(a) Each rule submitted to 
Attorney Sene gal 7 s Office 

c g f Ad m i; lis brat j.vo 

shall have 

statement 

the rule. 

must 



nets for filing 
introductory 

iately preceding 
introductory statement 
in the full official 
rr rule nnme cit ation 
ction being taken, 
(b ) Th e st atement of 

3 1 is s up ciiul paae of 

e publ icat ion r a rot| 

les .020 I ,~nd "" .0202 



rule 
and 




J>u oc ha ntcr 
intfo d »e I; 



p. p v bo i ncl u ded 

: ry sen tement . 



NORTH CAROLINA REGISTER 



55 



(c) When part of a rule is 
to be amended/ the agency shall 
cite the smallest portion of the 
rule which is changed. This is 
so the agency does not have to 
retype the entire rule when only 
a portion is being changed. 
When a rule is amended by the 
addition or delation of a 
paragraph, the introductory 
statement should read as 
follows-- "Rule (full citiation) 
has been amended by the 
addition/deletion of Paragraph 
(c) as follows:". In this case, 
only the paragraph which is 
being re-written needs to be 
typed. Other po. sgraphs will be 
renumbered accordingly. 

.0404 BODY OF RULES 

(a) The body of the rule, 
or the part that is amended, 
shall follow immediately the 
introductory statement for that 
rule. Generally, there will be 
no lines skipped in the body of 
the rule except in unusual 
circumstances, such as tables. 
All paragraphs should be 
indented two spaces or to the 
third space from the left 
margin . 

(b) All subsections and 
lists within the rule must be 
clearly labeled with the correct 
number or letter in parentheses 
as specified in Rules .0505 and 
.0507 of this GhaptrcY 
Subchapter . 

.0405 HISTORY NOTE 

(a) Each rule submitted to 
the Airboxrrcy General T s Off ic e 

Of fic e of Administrative 

for filing shall have a 
note containing the 



he arings 
history 
f ollowing 



inf ormat ion : 

(1) the authority for 
that rule, 

(2) the proposed 
effective date of the rule, 
(last line if an adoption), and 

(3) the effective 
date of the four most recent 
amendments to that rule or 
repealed line, whichever is 
appl icable . 

(b) The history note shall 
be typrd after the text or after 
any illustrations in the rule 
skipping one line and typing the 
words "History Note;" indented 
two spaces from the left margin 
or on the third space followed 
by the words : 

( 1 ) "Statutory 
Authority" in a rule where the 
authority is strictly statutory, 
or "Authority" in a rule where 
the authority is other than 
statutory. This would then be 
followed by the properly cited 
General Statute or authority. 



(2) On the next line, 
blocked under the letter "S" in 
"Statutory", the abbreviation 
"Eff." would be followed by the 
original effective date of the 
rule in full . 

(3) On the next line 



all 



amendment 



da-! 



original rule shall be listed 
following the words "Amended 
Eff.". The four most recen t 
amendment dates shall be given 
in chronological order, with the 
most recent amendment listed 
first. 

All items in the history note 
are separated by semicolons. 

(c) Authorities cited in 



historv notes shall 



cited 



according to tne rules of 
citation contained in "A Uniform 
System of Citation" (11th Ed. 
1967) except that the General 
Statutes of North Carolina shall 
be identified bv the designated 
"G.S." rather than "N.C. Gen. 
Stat." . 

.0406 HISi'CRY NOTE: TEMPORARY 
ADOPTION'S : AMENDMENTS : 
REPEALS 

(a) A temporary rule will 
have a history note which starts 
with the following statement: 
"Filed as a Temporary Rule Eff. 
(date), for a Period of (length) 
Days to Expire on (date)". The 
next line would then contain the 
citation of authority. 

(b) A temporary amendment 
is placed on the first line of 
the history note regardless of 
any prior history. The history 



note 



shai." 



re cam 



p nor 



effective and amendment dates xz 
applicable. The following 
wording shall be used: "riiju 
as a Temporary Amendment Eff. 
(date), for a Period of (length) 
Days to Expire on (date)". 

(c) A temporary repeal is 
placed on the first line of the 
history note, regardless of any 
prior history. The history note 
shall retain prior effective r.nd 
amendment dates if applicable. 
The following wording shall be 
used: "Filed as a Temporary 
Repeal Eff. (date), for a Period 
of (long tli) Days to Expire on 
(date)". 



SECTION .0500 - CODIFICATION OF 
RULES 

.0501 CODIFICATION SYSTEM 

(a) All rules to be filed 
with the Attorney Gencrcri-'-t; 

Office Office o f A djnini r t r n ti y e 

Hearings shall be codified 
within the system described in 
this Section, which has been 



56 



NORTH CAROLINA REGISTER 



adopted by the A-ttmni ?.y 
6oncr.!ti-h5 Gfrfiec O ffice o f 

Administra tive Hear ings for 

codification of the North 
Carolina Administrative Code. 

(b) The North Carolina 
Administrative Code has four 
major subdivisions of rules. 
Two of these. titles and 
chapters, are mandatory. The 
major subdivision of the North 
Carolina Administrative Code is 
the title. Each major 
department in the North Carolina 
executive branch of government 
has been assigned a title 
number. The othe*- two, 
subchapters and sections arc 
optional subdivisions to be used 
by agencies when appropriate. 

(c) All rules when filed 
with the fttrtorrrc-y Gcncvai Office 
of Ad minist rat ivo He a rin g s shall 
be assigned a title, chapter* 
and a rule number. The agency 
may also assign either or both a 
subchapter designation and 
section number to the rule. 

(d) The official citation 
to a rule in the North Carolina 
Administrative Code identifies 
the rule by title, chapter, 
subchapter (if any), section, or 
rule number. Once codified, a 
rule number may not be changed. 
This number is permanent and 
remains even when the rule is 
repealed . 

.0502 CHAPTER SUBDIVISION 

(a) The chapter is the 
second largest subdivision of 
the North Carolina 
Administrative Code. Each major 
department shall be responsible 
for assigning chapter numbers 
within its title. 

fV> The f-irrrb chap-bcr in 
cadi 't'.rt-Jre-T vrirth tire exception 
of fF-irbrre 2-r-r frccttptrt i o nal 
fcr±ocns~irrg Bxrtrrchrr nhaii be ;trt 
trs-xc'.c as a chap-ber caii-od 
^Sttpart ro c ntal Ra les:" The 
depoTrtment-ai rul js elmptor sriraii 
ctmhrin rrrbrs vjlrrch trcrb mrt the 



the 



generenr orgn:Td-z:a-t-iron of 
ma-j-rr dep a rt m ent aird may air 
used -for inrros w hich appTy to 
more than one por-triorr of a 
tit l e r or procedures vdrieh arc 
trsed for s e v eral: ddrvis-iorrs o-f 
■the depcnrtnienr-r 

(b) With the exception of 
Title 21 , all chapters within a 
title shall be assigned 
consecutive numbers. — chapter 
+ being depai-tmcn tart r ul es :■ 

.0503 SUBCHAPTER SUBDIVISION 

(a) The subchapter is tiie 

largest of the optional 

subdivisions and shall be used 

to divide chapters into broad 



subject areas, small agencies, 
sections of a division, etc., 
when an agency finds it 
appropriate. When subdividing a 
chapter into subchnptevs, an 
agency shall subdivide the 
entire chapter into at least two 
subchapters as with any 
subdivision . 

(b) All subchapters of the 
North Carolina Administrative 
Code are represented by 
consecutive capital letters 
following the chapter number. 

.0504 SECTION SUBDIVISION 

(a) The section is the 
smaller of the optional 
subdivisions and the smallest 
subdivision which contains 
rules. It shall be used by the 
agency to place together small 
groups of rules in the same 
subject area. These small 
groups of rules shall be within 
chapters or subchapters 
depending upon whether the first 
optional subdivision is used. 

(b) All sections are 
represented as the first two 
digits of a four digit number 
following a decimal . They shall 
be conse _'.'.! ive starting with 
Section .0100. 

(c) Because the two digits 
are set aside, there is a limit 
of 99 sections within any 
chapter or subchapter. It is 
recommended, however, that the 
number of sections within a 
chapter or subchapter be kept 
well below the maximum in order 
to provide easily for the 
audition of now sections in the 
future and to increase the ease 
with which particular rules can 
be located. 

.0505 RULE 

Tiie rule is represented by 
the second two digits of the 
four numbers following a 
decimal. Rules shall be 
numbered consecutively starting 
wih Rule .0101 . 

.0506 SUBSECTIONS OF RULES 

(n) A rule containing more 
than one separate idea may need 
to be subdivided. The 
codification system within the 
Nor tli Carolina Administrative 
Code allows for a rule to be 
subdivided five times as 
follows: (a), (b), (c); (1), 
( 2 ) , ( 3 ) ; ( A ) , ( B ) . ( C ) ; ( i ) , 
(ii). (iii); (I), (III. (III). 
All subsections of rules shall 
be represented by 



n is 



oracr , 
and each label shall be in 
parentheses . 

(b) Points to remember 
when subdividing a rule are: 



NORTH CAROLINA REGISTER 



57 



( 1 ) When subdividing 
a rule always subdivide the 
entire rule into Paragraphs. 

f 2 J Never subdivide a 
rule too far as it may make the 
rule hard to understand. 



sub 

the 

lis 

(b) 

(E) 

the 

sub 

fol 

.05 

the 

con 

is 

thi 



507 LI 
When 

divided b 
sequence 
ts is: ( 
, (c) ; (i 
, CO.; (I 
re is 
division , 
low the 
06(a) of 
rule is 
tains an 
subdivide 
s Rule is 



STING WITHIN RULE 

a rule is 

ut contains a li 

of labels for 



1 ) , (2), (3) ; ( 
), (ii), (iii): ( 
), (II), (III), 
a list within 
the rule sli 
sequence in R 

this Section . 
not subdivided, 
item or a list wh 
d, the sequence 

f oil owed . 



n ot 

s± , 

the 
a) , 
A) , 

If 

a 

all 

ule 

If 
but 
ich 

in 



.0 

boa 
Cha 

wit 
Off 
Hea 
coo 
onl 
for 
Lie 



SECTION .0600 - AGENCY 
RESPONSIBILITY 

GOT APA COORDINATORS 

Each department, agency, 
rd or commission required by 
pter 150 A B to file rules 
h the Atto rn ey €errora i : s 
i ce Off ic e of A djjyj Tlstrati ve 
rings shall designate an APA 
rdinator. There shall be 
y one coordinator designated 



each Title or Occupational 

ensing Board and the name, 

■ : iaress and telephone number of 

t coordinator shall be filed 



tha 
wit 
ft-irt 
Qf 
Hea 
1 
dep 
com 
ind 
coo 
for 
-the 
Off 



li the APA 



s ection 



orrrry General ' s Gffice 

f ice of Admjnistrat ive 



rxnc 



f a change occurs within 
artment, agency, board 
mission with regard to 
ividual designated as 

rdinator, the change shall 



any 

or 

the 

APA 

be 



warded to the APA section erf 
A t to rne y Gener al 1 s Off-ice 

: ic e of A dministr a t ive 

Hearings within 10 working days. 



.0602 AGENCY RESPONSIBILITY 
Each department, agency, 
board and commission shall be 
responsible for proofing the 
final computer copy of their 
rules. The department, agency, 
board, or commission shall have 
30 days, unless given prior 
approval by the ArlirrinirrtT-at-ivc 
Pi-occtltirea Section Off ice of 
Admini strati v e He arings, from 
receipt of line-numbered copies, 
to notify the AdrriiTi— tra-trrvc 
Procedures S ect ion of the 
Ab-torncy Generals Gffice Office 
of Admini str ativ e H onringr 
any typographical errors, n 
by AP/rr- 



of 



SECTION .0700 - ELECTRONIC 
FILINGS 

.0701 RULES FILED THROUGH 
ATMS COMPUTER SYSTEM 
(a) If any agency is 
connected to the State Computer 



Center , 
through 
system . 

(b) 
submit 
Rtriremakin 
form and 



rule: 
the 



may 

ATMS 



be filed 
computer 



The agency shall also 

•j S i;hni ssion for Filin g 
an oriainal copy of 



rules filed, as required by this 
Clrap-ter Sub chapt er . 

The rules shall be in the 
computer system in proper format 
upon filing. 

■ (■ c) in trsiirg thi s proc c ssr 
the agency chaii submit- wtrfcfr the 
fi iing a memo rribh •Hte 

f o i iow im-g-T- 

-H-> agency namc-r 

x2-)- contact per so rrr 

-fo-J - d o c u; ncn~b name 

■is bora g-e na ; ae ) , 

-Kr)- operstor- I -s ntir.bei.-r ami 

-f5-r effect ire dtvte 

of the f il - in g r 
TIto A ttorney 6tncrsl- I -s Gffice 
sh n 1 1 notify tire corrfracb p ers on 
with tiro tran s m i trraar tfcter At 
th-ra t im c , t-hc agency may dcicte 
the document from it-- s ttrra jot 

( c ) In using th is process , 

t h e agency shnll g_u.bni.i t wi t h , the 

f ilin g a_ El'rrvnnjc Fiji ng fo r :n . 

The O ffice of Ad minintrat i v e 

H e_a ri ngs sh all return a c opy of 

' lie form notifyi ng th e c o ntact 

' :tal 




SUBCHAPTER 2B - 
REGi: 

SECTION .0100 



NORTH 
>TER 



CAROLINA 



PUBLICATION 



.0101 PUBLICATION OF THE 

NORTH CAROLINA REGISTER 

( a ) Proposed 
administrative rules of state 
agencies and occupational 
licensing boards, and executive 
orders shall pursuant to General 
Statute Chapter 150B be 
submitted to the Office of 
Administrative Hearings to be 
published in the North Carolina 
Regis ter . 

(b) Submissions for 
publication shall be filed in 
proper physical form in 
accordance with the rules in 
this Subchapter. 

.0102 STATEMENTS OF 
ORGANIZATION 
(a) State agencies and 
occupational licensing boards 



53 



NORTH CAROLINA REGISTER 



shall submit a Statement of 

Organization for publication in 
the North Carolina Register . 

(b) The Statement of 
Organization shall meet the 
requirements of G.S. 150B-I0 and 
be submitted to the Office of 
Administrative Hearings no later 
than July 1 of each year for 
publication in the August issue 
of the North Carolina Register. 

.0103 SUBMISSION AND 

PUBLICATION SCHEDULE 



(a) In order to be 
acceptable for publication, 
submissions for proposed 
administrative rules and 
executive orders rhall be 
submitted to the Office of 
Administrative Hearings by the 
closing date for the issue as 
set out in the calendar of 
closing ?md issue dates in 
Paragraph (b) of this Rule. 

(b) The closing dates for 
submission and issue dates for 
the North Carolina Register are 
as f ollows : 







NORTH 


CAROLINA REGISTER 






PUBLICATION 


DEADLINES AND SCHEDULES 








(April 


1936 - Apr 


il 1937 




Issue 


Last Day 


Last Day 


Earliest 


Earliest 


Earliest 


Date 


for 


for 


Date for 


Date for 


Effective 




Filing 


Electronic Public 


Adoption 


Date 






Filing 


Hearing 


by Agency 




04/15/86 


03/25/36 


04/0 1/86 


05/15/86 


06/14/06 


00/0 1/86 


05/15/06 


04/24/86 


05/01/86 


06/14/86 


07/14/86 


09/01/86 


06/16/86 


05/27/86 


06/03/86 


07/16/86 


03/15/86 


10/01/86 


07/15/86 


06/25/86 


07/02/86 


08/14/36 


09/13/86 


1 1/01/36 


08/15/86 


07/28/86 


08/04/36 


09/14/86 


10/14/86 


12/01/86 


09/15/86 


08/26/86 


09/02/86 


10/15/86 


1 1/14/86 


01/01/37 


10/15/86 


09/25/86 


10/02/06 


1 1/14/36 


12/14/86 


02/01/07 


1 1/14/86 


10/23/86 


10/30/86 


12/14/86 


01/13/87 


03/01/87 


12/15/86 


11/25/86 


12/02/86 


01/14/87 


02/13/87 


04/01/37 


01/15/87 


12/29/86 


01/05/87 


02/14/07 


03/16/87 


05/01/37 


02/16/87 


01/26/87 


02/02/87 


03/10/87 


04/17/87 


06/01/07 


03/16/87 


02/23/87 


03/02/87 


04/15/87 


05/15/87 


07/01/87 



.0104 AVAILABILITY OF THE 

NORTH CAROLINA REGISTER 
The North Carolina Register 
is published monthly by the 
Office of Administrative 
Hearings and is available at a 
cost cf ninety five dollars ($95 



.00) per year subscription. 
Requests for subscriptions 
should r. :■ directed to the Office 
of Administrative Hearings, P.O. 
Drawer 11666, Raleigh, N. C. 
27604, (919) 733-267G. 



NORTH CAROLINA REGISTER 



59 



t, 

in 

2 A 


t 
tJ 


10 

le 
.04 


body 
form 
04. 


proposed 

accompanied 



( 1 ) All proposed 
rules shall be accompanied by an 

SECTION .0200 - GENERAL FILING original copy of the proposed 

REQUIREMENTS text. 

(2) The original 
.0201 PUBLICATION OF shall contain an introductory 

FR0P03ED RULES statement in the form specified 

(a) In order to be in 26 NCAC 2A .04 03(a). 
acceptable for publication by (3) Following the 
the Office of Administrative introductory statement, 
Hearings, all proposed rules of the rule shall be 
shall be specified in 2G l.'CAC 

accompanied by a completed (b) Amendments 

Submission for Notice form. (1) All 

(b) The original and one amendments shall be 
copy of the rule as proposed by an original copy of the 
shall be submitted in the Office proposed text. 

of Administrative Hearings. The (2) The original 

original shall be in proper form shall contain an introductory 

as required by Rule .0302 of statement in the form specified 

this Subchapter. in 26 NCAC 2A .0403(a). 

(3) Following the 
.0202 SUBMISSION FOR NOTICE introductory statement the body 

(a) The completed of the rule shall be in the form 
Submission for Notice form specified in 26 NCAC 2A .0404 
certifies that the proposed and as follows: 

rule(s) being submitted for (A) any 

publication lias (have) been text to be deleted from the 

officially proposed for notice existing rule shall be indicated 

by the agency. by slash through marks: and 

(b) More than one rule may (B) any 

be listed on a single form if text being added shall be 

the rules are in the same underlined. 

chapter and the proposed (4) With prior 

effective dates and the public approval from the Office of 

hearing dates are the same. Administrative Hearings. an 

agency mav cite the minimum 

.0203 ACCEPTANCE FOR PUBLICATION portion of the rule which is 

When a submission is changed. Portions published 

accepted for publication by the shall give adequate notice of 

Office of Administrative the change(s) to the rule. 

Hearings. the agency will be (c) Repeals 

given a copy of the Submission £ 1 ) All proposed 

for Notice form which indicates repeals shall be accompanied by 

that the submission is an original copy which contains 

acceptable for publication. an introductory statement in the 

form soccificd in 26 NCAC 2A 

.0204 REFUSAL OF PUBLICATION .0403. 

(a) The Office of (2) Following the 
Administrative Hearings will introductory statement the 
refuse to accept for publication submission shall contain a list 
any proposed rules which do not of the rule number(s) and rule 
meet the requirements of this name(s) of the items to be 
Subchapter. repealed. 

(b) If the submission for 
publication is not acceptable, 

it will be returned to the SECTION .0400 - ELECTRONIC 

agency with an indication of the FILINGS 
changes needed. 

.0401 SUBMISSIONS THROUGH 
ATMS COMPUTER SYSTEM 

SECTION .0300 - PHYSICAL FORMAT (a) If an "agency is 

connected to the State Computer 

.0301 GENERAL TYPING Center, submissions for 

INSTRUCTIONS publication in the North 

Proposed administrative Carolina Register may be 

rules to be published in the transferred electronically 

North Carolina Register shall be 

submitted in the form specified 

in 26 NCAC 2A .040 1 . 

.0302 ORIGINAL COPY OF 

PROPOSED ADOPTIONS 
( a ) Adcp t ions 

60 NORTH CAROLINA REGISTER 



through the 


ATMS computer 


system . 




(b) The 


agency shall 


submit the Submission for Notice 


form and origi: 


lal copy of the 


proposed text 


as required in 


this Subchapter 


The proposed 



n inn ■mi ■ fcn- _!..,»,..... 



text shall be in the computer 
system in proper format upon 
submission to the Office of 
Administrative Hearings. 

(c) In using this process, 
the agency shall submit with the 
filing an Electronic Filing 
form. The Office of 
Administrative Hearings shall 
return a copy of the form 
notifying the contact person 
with the transmittal date. Upon 
receipt of the form containing 
the transmittal date, the agency 
may delete the document from its 
storage . 



CHAPTER 3 - HEARINGS DIVISION 

.0001 GENERAL 

Governed by the principles 
of fairness, uniformity, and 
punctuality, the following 
general rules apply: 

CI) The Rules of Civil 
Procedure as contained in G.S. 
1A-1 and the General Rules of 
Practice for the Superior and 
District Courts shall apply in 
contested cases in the Office of 
Administrative Hearings (OAH) 
unless another specific statute 
or rule of the Office of 
Administrative Hearings provides 
otherwise . 

(2) The Office of 
Administrative Hearings may 
supply, at the cost of 
reproduction, forms for use in 
contested cases. These forms 
will conform to the format of 
the Administrative Office of the 
Courts' Judicial Department 
Forms Manual . 

(3) Every document filed 
with the Office of Administative 
Hearings shall be signed by the 
attorney who prepared the 
document, if it was prepared by 
an attorney, and shall contain 
his name, address, telephone 
number, and North Carolina State 
Bar number. 

.0002 DEFINITIONS AND 
CONSTRUCTION 
(a) The definitions 
contained in G.S. 150B-2 are 
incorporated herein by 
reference. In addition, the 
following definitions apply: 

(1) "Chief Hearing 
Officer" means the Director of 
the Office of Administrative 
Hearings appointed according to 
G.S. Chapter 7A, Article 60. 

(2) "File or Filing" 
means to place the paper or item 
to be filed into the care and 
custody of the Executive 
Secretary of the Office of 
Administrative Hearings, and 



acceptance thereof by him, 
except that the hearing officer 
may permit the papers to be 
filed with him in which event 
the hearing officer shall note 



thereon the filing date. 



All 



documents filed with the Office 
of Administrative Hearings, 
except exhibits, shall be in 
letter size 3 1/2" by 11". 

(3) "Hearing Officer" 
means the person assigned by the 
Chief Hearing Officer, pursuant 
to G.S. Chapter 7A, Article 60, 
and G.S. 1503-32, to hear the 
contested case. 

(4) "Service or 
Serve" means personal delivery 
of, unless otherwise provided by 

w or rule, delivery by first 
ciass United States Postal 
Service mail or a licensed 
overnight express mail service, 
postage prepaid and addressed to 
the party at his or her last 
known address. A Certificate of 
Service by the person making the 
service shall be appended to 
every document requiring service 
under these Rules. Service by 
inail or licensed overnight 
express mail is complete upon 
placing the item to be served, 
enclosed in a wrapper addressed 
to the person to be served, in 
an official depository of the 
United States Postal Service or 
upon delivery, postage prepaid 
and wrapped in a wrapper 
addressed to the person to be 
served, to an agent of the 
overnight express mail service. 

(b) The rules of statutory 
construction contained in 
Chapter 12 of the General 
Statutes shall be applied in the 
construction of these Rules. 

.0003 COMMENCEMENT OF 

CONTESTED CASE: NOTICE 

(a) A contested case in 
the Office of Administrative 
Hearings is commenced by the 
filing of a petition as required 
by G.S. 150C-23 together with a 
Certificate of Service 
establishing service of a copy 
of the petition on all other 
parties . 

(b) Within 5 days of the 
filing of a petition found 
sufficient by the Office of 
Administrative Hearings to 
commence a contested case, the 
Chief Hearing Officer shall 
assign a hearing officer to the 
case. Within 10 days of the 
filing of a petition commencing 
a contested case, the Executive 
Secretary of the Office of 
Administrative Hearings shall 
servo a Notice of Contested Case 
Filing and Assignment upon all 
who arc parties to the dispute. 



NORTH CAROLINA REGISTER 



61 



The notice shall contain the 
following : 

( 1 ) Name of case and 
date of filing; 

(2) Name, address, 
and telephone number of the 
hearing officer assigned; 

(3) Copy of petition 
to adverse party if not 
previously served by petitioner; 
and 

(4) A request for a 
written response to the petition 
within 10 days of service of the 
Notice of Contested Case Filing 
and Assignment. 

.0004 ORDER FOR 

PREHEARING STATEMENTS 
The hearing officer may 
serve all parties with an Order 
for Prehearing Statements 
together with or after service 
of the Notice of Contested Case 
Filing and Assignment. The 
parties thus served shall, 
within 20 days of service, file 
the requested statements settj-i 
out fciie party's position on t. 
f ollowing = 

( 1 ) Tiie nature of the 
proceeding and the issues to be 
resolved ; 

(2) A brief statement of 
the facts and reasons supporting 
the party's position on each 
matter in dispute; 

(3) A list of facts, 
conclusions, or 

exhibits to which the party 
will stipulate; 

(4) A list of proposed 
witnesses with a brief 
description of his or her 
proposed testimony; 

(5) A description of what 
discovery, if any, the party 
will seek to conduct prior to 
the contested case hearing and 
an estimate of the time needed 
to complete discovery; 

(6) Whether the party will 
order a transcript; 

(7) Venue considerations; 
and 

(8) Other special matters. 

.0005 DUTIES OF THE 

HEARING OFFICER 
In conjunction with the 
powers of hearing officers 
prescribed by G.S. 150B-33, the 
hearing officer shall perform 
the following duties, consistent 
with lav;: 

( 1 ) Hear and rule on 
mot ions ; 

(2) Grant or deny 
cont in nances ; 

(3) Issue orders regarding 
prehearing matters. including 
directing the appearance of the 
parties at a prehearing 
conference ; 



(4) Examine witnesses when 
decried necessary to make a 
complete record and to aid in 
the full development of material 
facts in the case; 

(5) Make preliminary, 
interlocutory, or other orders 
as deemed appropriate; 

(G) Recommend a summary 
disposition of the case or any 
part thereof when there is no 
genuine issue as to any material 
fact or recommend dismissal when 
the case or any part thereof lias 
become moot or for other 
reasons ; and 

(7) Apply sanctions in 
accordance with Rule .0014 of 
this Chapter . 

.0006 CONSENT ORDER/SETTLEMENT 
OR STIPULATION 
Informal disposition may be 
made of any contested case or 
any issue therein by 
stipulation. agreement, or 
consent order at any time during 
the proceedings. Parties may 
enter into such agreements on 
their own or may ask for a 
settlement conference with a 
hearing officer of the Office of 
Administrative Hearings to 
promote consensual disposition 
of the case . 

.0007 SETTLEMENT CONFERENCE 
(a) A settlement 

conference is for the primary 
purpose of assisting the parties 
in resolving disputes and for 
the secondary ; . vpose of 
narrowing the issues and 
preparing for hearing. 

lb) Upon the request of 
any party or the hearing 
officer, the Chief Hearing 
Officer shall assign the case to 
another hearing officer for the 
purpose of conducting a 
settlement conference . Unless 
both parties and the he ring 
officer agree, a unilateral 



request 



for 



ettletnent 



conference will not constitute 
good cause for a continuance. 
The c >ufercnco shall be 
conducted at a time and place 
agreeable to all parties and the 
hearing officer. It shall be 
conducted by telephone if any 
party would be required to 
travel more than 50 miles to 
attend, unless that party agrees 
to travel to the location set 
for the conference. If a 
telephone conference is 
scheduled, the parties must be 
available by telephone at the 
time of the conference. 

(c) All parties shall 
attend or be represented at a 
settlement conference. Parties 
or their reprcsenta tives shall 



62 



NORTH CAROLINA REGISTER 



be prepared to participate in 
settlement discussions. 

(d) The parties shall 
discuss the possibility of 
settlement before a settlement 
conference if they believe that 
a reasonable basis for 
settlement exists. 

Ce) At the settlement 
conference, the parties shall be 
prepared to provide information 
and to discuss all matters 
required in Rule .0004 of this 
Chapter . 

(f) If, following a 
settlement . conference, a 
settlement lias not been readied 
but the parties have reached an 
agreement on any facts or other 
issues, the hearing officer 
presiding over the settlement 
conference shall issue an order 
confirming and approving. if 
necessary, those matters agreed 
upon. The order is binding on 
the hearing officer who is 
assigned to hear the case. 

.0008 PREHEARING CONFERENCE 
NOTICE 

(a) The purpose of the 
prehearing conference is to 
simplify the issues to be 
determined, to obtain 
stipulations in regard to 
foundations for testimony or 
exhibits, to obtain stipulations 
of agreement en nondisputed 
facts or the application of 
particular laws, to consider the 
proposed witnesses for eacli 
party, to identify and exchange 
documentary evidence intended to 
be introduced at the hearing, to 
determine deadlines for the 
completion of any discovery, to 
establish hearing dates and 
locations if not previously set, 
to consider such other matters 
that may be necessary or 
advisable and. if possible, to 
reach a settlement without the 
necessity for further hearing. 
Any final settlement shall be 
set forth in a settlement 
agreement or consent order and 
made a part of the record. 

(b) Upon the request of 
any party or upon the hearing 
officer's own motion he may hold 
a prehearing conference prior to 
each contested case hearing. 
The hearing officer may require 
the parties to file prehearing 
statements in accordance with 
Rule .0004 of those Rules. A 
prehearing conference shall be 
an informal proceeding conducted 
expeditiously by the hearing 
officer. Agreements on the 
simplification of issues, 
amendments, stipulations, or 
other matters may be entered on 
the record or may be made the 



subject of an order by the 
hearing officer. The hearing 
officer shall give the parties 
not less than 15 days notice 
before the scheduled date of a 
prehearing conference . 

.0009 NOTICE OF HEARING 

(a) The Office of 
Administrative Hearings shall 
give the parties in a contested 
case a Notice of Hearing not 
less than 15 days before the 
hearing, which notice shall 
contain the following: 

( 1 ) Date, time , 
place, and nature of the 
hearing ; 

(2) Name, address, 
and telephone number of the 
presiding hearing officer; 

(3) A citation to the 
relevant statutes or rules 
involved; 

(4) A short and plain 
statement of the factual 
allegations or issues to be 
determined ; 

(5) Notification of 
the right of a party to 
represent himself, to be 
represented by an attorney, or 
to be represented by a person of 
his choice if not otherwise 
prohibited as the unauthorized 
p^ -.ctice of law; 

(6) A citation to the 
rules of the Office of 
Administrative Hearings 
pertaining to contested case 
hearings and to the contested 
case provisions of G.S. Chapter 
150B and notification of how 
copies may be obtained; 

(7) A brief 
description of the procedure to 
be followed at the hearing; 

(0) A statement 
advising the parties to briny to 
the hearing ail documents, 
records, and witnesses they need 
to support their positions; 

(9) A statement that 
subpoenas may be available to 
compel the attendance of 
witnesses or the production of 
documents, referring the parties 
to Rule .0013 of this Chapter 
relating to subpoenas; 

(10) A statement 
advising the parties that a 
notice of appearance, containing 
the name of counsel or other 
representatives, if any, must be 
filed with the hearing officer 
within 10 days of the date of 
service of the Notice of Hearing 
if a party intends to appear at 
the hearing; and 

(11) A statement 
advising the parties that 
failure to appear at the hearing 
may result in the allegations of 
the Notice of Hearing being 



NORTH CAROLINA REGISTER 



63 



taken as true, or the issues set 
out being deemed proved, and a 
statement which explains the 
possible results of the 
allegations being taken as true 
or the issues deemed proved. 

(b) The Office of 
Administrative Hearings shall 
give notice to all parties with 
a Notice of Hearing either 
personally or by certified mail 
or, if those methods are 
unavailing, in accordance witli 
G.S. 1A-1 , Rule 4( jl ) . In the 
event that notice is 
accomplished by certified mail, 
the delivery date on the return 
receipt shall be the date of 
notice . 

.0010 DISQUALIFICATION OF 
HEARING OFFICER 
Any party may file an 
affidavit of personal bias or 
disqualification pursuant to 
G.S. 150B-32(b). A hearing 
officer shall withdraw from 
participation in a contested 
case if at any time he deems 
himself disqualified for any 
reason . 

.0011 CONSOLIDATION OF CASES 
(a) The Chief Hearing 
Officer of the Office of 
Administrative Hearings may 
order a joint hearing of any 
matters at issue in contested 
cases involving common questions 
of law or fact or multiple 
proceedings involving the same 
or related parties, or may order 
the cases consolidated or make 
other orders to reduce costs or 
delay in the proceedings. In 
consolidated cases in the 
Department of Human Resources 
involving multiple aggrieved 
persons, the Chief Hearing 
Officer shall assign hearing 
officers of the Office of 
Administrative Hearings in 
accordance with G.S. 15013-26. 

(bJ A party requesting 
consolidation shall serve a 
petition for consolidation on 
all parties to the cases to be 
consolidated and shall file the 
original with the Office of 
Administrative Hearings, 

together with a Certificate of 
Service showing service on all 
parties as herein required. Any 
party objecting to the petition 
shall serve and file his 
objections within 10 days after 
service of the petition for 
consol ifiat ion . 

(c) Upon determining 
whether cases should be 
consolidated, the Chief Hearing 
Officer shall serve a written 
order on all parties which 
contains a description of tiic 



cases for consolidation and the 
reasons for the decision. 

(d) Nothing contained in 
this Rule shall be deemed to 
prohibit the parties from 
stipulating and agreeing to a 
consolidation which shall be 
granted upon submission of a 
written stipulation signed by 
all the parties to the Chief 
Hearing Officer. 

(e) Following receipt of a 
notice of or order for 
consolidation, any party nay 
petition for severance by 
serving it on all other parties 
and filing it with the Office of 
Administrative Hearings at least 
7 days prior to the first 
scheduled hearing date. If the 
Chief Hearing Officer finds that 
the consolidation will prejudice 
any party, he shall order the 
severance or other relief which 
will prevent the prejudice from 
occurring . 

.0012 DISCOVERY 

(a) Discovery methods are 
means designed to assist parties 
in preparing to meet their 
responsibilities and protect 
their rights during hearings 
without unduly delaying, 
burdening or compl icat ing the 
hearings process and with due 
regard to the rights and 
responsibilities of other 
parties and persons affected. 
According^-, parties are obliged 
to exhaust all less formal 
opportunities to obtain 
discoverable material before 
utilizing this Rule. 

(b) Any means of discovery 
available pursuant to the North 
Carolina Rules of Civil 
Procedure, G.S. 1A-1 > is 
allowed. If tiie pax'ty from whom 
discovery is sought objects to 
the discovery, the party socking 
the discovery may file a motion 
with t!ie hearing officer to 
obtain an order compelling 
discovery. In the disposition 
of the motion, the party seeking 
discovery shall have the burden 
of showing that the discovery is 
needed for the proper 
presentation of the party's 
case, is not for purposes of 
delay, and that the issues in 
controversy are significant 
enough to warrant the discovery. 
In ruling on a motion for 
discovery. the hearing officer 
shall recognize all privileges 
recognized at law. 

(c) When a party serves 
another party with a Request for 
Discovery, that request need not 
be filed with the Office of 
Administrative Hearings but 



64 



NORTH CAROLINA REGISTER 



shall be served upon all 
parties . 

(d) The parties in any 
contested case shall immediately 
commence to exchange information 
voluntarily, to seek access as 
provided by lav; to public 
documents and to exhaust other 
informal means of obtaining 
discoverable material. 

(e) All discovery shall be 
completed no later than the 
first day of the contested case 
hearing. A hearing officer may 
shorten or lengthen the period 
for discovery and adjust hearing 
dates accordingly and, when 
necessary. allow discovery 
during the pendency of the 
contested case hearinci. 

(f) No later than 15 days 
from receipt of a notice 
requesting discovery, the 
receiving party shall : 

( 1 ) move for relief 
from the request; 

(2) provide the 
requested information, material 
or access; or 

(3) offer a schedule 
for reasonable compliance with 
the request . 

(g) Sanctions for failure 
of a party to compl}' with an 
order of the hearing officer 
made pursuant to the discovery 
rules of this Chapter shall be 
as provided for by G.S. 1A-1, 
Rule 37, and Rule .0014 of this 
Chapter . 

.0013 SUBPOENAS 

(a) Requests for subpoenas 
for the attendance and testimony 
of witnesses or for the 
production of documents, either 
at a hearing or for the purposes 
of discovery, shall be made in 
writing to the heaving officer, 
shall contain a brief statement 
demonstrating the potential 
relevance of the testimony or 
evidence sought, shall identify 
any documents sought with 
specificity, shall include the 
full name and home or business 
address of all persons to be 
subpoenaed and, if known, the 
date, time, and place for 
responding to the subpoena . 
Upon receiving such written 
request or upon his own motion, 
the hearing officer shall issue 
the requested subpoenas . 

(b) A subpoena shall be 
served in the manner provided by 
the Rules of Civil Procedure, 
G.S. 1 A— 1 . The cost of service, 
fees, and expenses of any 
witnesses subpoenaed shall be 
paid by the party at whose 
request the witness appears. A 
party seeking an order imposing 
sanctions for failure to comply 



with any subpoena issued under 
this Rule must prove proper 
service of the subpoena. 

(c) Objection to Subpoena 

(1) Upon receipt of a 
written request for the 
revocation of a subpoena, the 
hearing officer shall schedule 
and conduct a hearing on the 
motion with not less than 5 days 
notice to the parties of the 
date, time, and place of the 
hearing. The hearing officer 
shall quash the subpoena if lie 
finds that it is invalid 
according to lav; on grounds of 
relevancy, lack of 
particularity, or for any other 
legal insufficiency. 

(2) In the case of 
objections to a subpoena, which 
objections do not require 
revocation, the hearing officer 
nay modify the subpoena if it is 
unreasonable or oppressive, 
taking into account the issues, 
costs or other burdens of 
compliance when compared with 
the value of the testimony or 
evidence sought for the 
presentation of the party's 
case, and whether or not there 
are alternative methods of 
obtaining the desired testimony 
or evidence . 

.0014 SANCTIONS 

Ca) If a party fails to 
appear at a hearing or fails to 
comply with any interlocutory 
orders of the hearing officer, 
the hearing officer may : 

(1) Find that the 
allegations of or the issues set 
out in the notice of hearing or 
other pleading may be taken as 
true or deemed proved without 
further evidence; 

(2) Dismiss or grant 
the motion or petition; 

(3) Supress a claim 
or defense ; or 

(4) Exclude evidence, 
(b) In the event that any 

party or attorney at law or 
other representative of a party 
engages in behavior that 
obstructs the orderly conduct of 
proceedings or would constitute 
contempt if done in the General 
Court of Justice. the hearing 
officer presiding may refer the 
matter to the Chief Hearing 
Officer of the Office of 
Administrative hearings who may 
conduct such investigation as he 
deems necessary and decide 
whether the matter should be 
referred to : 

C 1 ) The Superior 
Court for contempt proceedings 
in accordance with G.S. 
150B-33(b)(8); or 



NORTH CAROLINA REGISTER 



6 5 



(2) The Disciplinary 
Hearing Commission of the North 
Carolina State Bar. 

.0015 MOTIONS 

(a) Any application to the 
hearing officer for an order 
shall be by motion which thall 
be in writing, unless made 
during a hearing, and must be 
filed and served upon all 
parties not loss than 10 days 
before the hearing, if any, is 
to be held on the motion. The 
written motion shall advise 
other parties that opposition to 
the motion must be in the form 
of a written response filed with 
the hearing officer and served 
on all parties not less than 5 
days before the hearing or 
disposition date requested in 
the movant's motion. Motions 
practice in contested cases 
before the Office of 
Administrative Hearings shall be 
governed by Rule 6 of tlte 
General Rules of Practice for 
the Superior and District 
Courts . 

(b) If any party desires a 
hearing on the motion, he shall 
make a request for a hearing at 
the time of the filing of his 
motion or response. A response 
shall set forth the nonmoving 
party's objections. All motions 
in writing shall be decided 
without oral argument unless an 
oral argument is directed by the 
hearing officer. When oral 
argument is directed by the 
hearing officer, a motion shall 
be considered submitted for 
disposition at the close of the 
argument. A hearing on a motion 
will be directed by the hearing 
officer only if it is determined 
that a hearing is necessary to 
the develop!., cut of a full and 
complete record on which a 
proper decision can be made. 
All orders on such motions, 
other than those made during the 
course of the hearing, shall be 
in writing and shall be served 
upon all parties of record not 
less than 5 days before a 
hearing, if any, is held. 

.0016 TIME 

Unless otherwise provided 
in the rules of the Office of 
Administrative Hearings or in a 
specific statute, time 
computations in contested cases 
before the Office of 
Administrative Hearings shall be 
governed by G.S. 1 A— I , Rule 6. 

.0017 INTERVENTION 

'a) Any person not named 
in the notice of hearing who 
desires to intervene in a 



contested case as a party shall 
file a timely motion to 
intervene and shall serve the 
motion upon all existing 
parties. Timeliness will be 
determined by the hearing 
officer in each case based on 
circumstances at the time of 
filing. The motion shall show 
how the movant's rights* duties, 
or privileges may be determined 
or affected by the contested 
case; shall show how the movant 
may be directly affected by the 
outcome or that movant's 
participation is authorized by 
statute, rule, or court 
decision; shall set forth the 
grounds and purposes for which 
intervention is sought ; and 
shall indicate movant's 
statutory right to intervene if 
one should exist . 

(b) Any party may object 
to the motion for intervention 
by filing a written noc.,;e of 
objection with the hearing 
officer within 5 days of service 
of the motion if there is 
sufficient tine before the 
hearing. The notice of 
objection shall state the 
party's reasons for objection 
and shall be served upon all 
parties. If there is 
insufficient time before the 
hearing for a written objection, 
the objection may be made at the 
hearing . 

(c) When determined to be 
necessary to develop a full 
record on the question of 
in ccrvent ion , the hearing 
officer may conduct a hearing on 
the motion to determine specific 
standards that will apply to 
each intervenor, and to define 
the extent of allowed 
intervention . 

(d) The hearing officer 
shall allow intervention upon a 
proper showing under these 
Ruler., unless the hearing 
officer finds that the movant's 
interest is adequately 
represented by one or more 
parties participating in the 
case or unless i ntervent ion is 
mandated by statute, rule, or 
court decision. An order 
allowing intervention shall 
specify the extent of 
partici, Ltion permitted the 
intervenor and shall state the 
hearing officer's reasons. An 
intervenor may be allowed to: 

( 1 ) File a written 
brief without acquiring the 
status of a party; 

(2 ) Intervene as a 
party with all the rights of a 
party; or 

(3) Intervene as a 
party with all the rights of a 



66 



NORTH CAROLINA REGISTER 



party but limited to specific 
issues and to the means 
necessary to present and develo; 
those issues . 

.0018 CONTINUANCES 

Requests for a continuance 
of a hearing shall be granted 
upon a showing of good cause. 
Unless time does not permit, a 
request for continuance of the 
hearing shall be made in writing 
to the hearing officer and shall 
be servod upon all parties of 
record. In determining whether 
good cause exists. due regard 
shall be given to the ability of 
the party requesting a 
continuance to effectively 
proceed without a continuance. 
A request for a continuance 
filed within 5 days of the 
hearing shall be denied unless 
the reason for the request could 



not earlier 
ascertained . 

(1) "Good 
include : 
incapacitat ing 
party . 
attorney 



have 



cause" 
death 
illness 
representative , 
of a party; a 



been 

shall 

or 

of a 

or 

court 
order requiring a continuance; 
lack of proper notice of the 
hearing; a substitution of the 
representative or attorney of a 
party if the substitution is 
shown to be required; a change 
in the parties or pleadings 
requiring postponement, and 
agreement for a continuance by 
all parties provided that it is 
shown that more time is clearly 
necessary to complete authorized 
discovery or other mandatory 
preparation for the case and the 
parties and the hearing officer 
have agreed to a new hearing 
date, or, the parties iiave 
agreed to a settlement of the 
case which has been or will 
likely be approved by the final 
decision maker. 

C2) "Good cause" shall not 
include: intentional delay; 
unavailability of counsel or 
other representative because of 
engagement in another judicial 
or administrative proceeding 
unless all other members of the 
attorney's or representative's 
firm familiar with the case are 
similarly engaged, or if the 
notice of the other proceeding 
was received subsequent to the 
notice of the hearing for which 
the continuance is sought; 
unavailability of a witness if 
the witness testimony can be 
taken by deposition, and failure 
of the attorney or 
representative to properly 
utilize the statutory notice 
period to prepare for the 
hearing. During a hearing, if 



it appears in the interest 
justice that further testim 
should be received 
sufficient time does not rem 
to conclude the testimony, 
hearing officer shall eit 
order the additional testim 
taken by deposition or conti 
the hearing to a future date 
oral notice on the record sii 
be sufficient. A continua 
shall not be granted when to 
so would prevent the case f 
being concluded within 
statutory or regulat 
deadline . 



or 

ony 
and 
a in 
the 
her 
ony 
nuc 
a lid 
all 
nee 
do 
rom 
any 
ory 



.0019 



OF 



evident to 
In cases 
is 
the 
to 
the 
the 



RIGHTS AND 

RESPONSIBILITIES 

PARTIES 

(a) All parties shall have 
the right to present evidence, 
rebuttal testimony, and argument 
with respect to the issues of 
lav/ and policy, and to 
cross-examine witnesses, 
including the author of a 
document prepared by, on behalf 
of, or fox - use of the agency and 
offered in evidence. 

(b) A party shall have all 
evidence to be presented, both 
oral and written, available on 
the date for hearing. Requests 
for subpoenas, depositions, or 
continuances shall be made 
within a reasonable time after 
their need becomes 
the requesting party. 
when the hearing time 
expected to exceed one day, 
parties shall be prepared 
present their evidence at 
date and tine ordered by 
hearing officer or as agreed 
upon at a prehearing conference. 

(c) The hearing officer 
shall send copies of all orders 
or decisions to all parties 
simultaneously. Any party 
sending a letter, exhibit, 
brief, memorandum, or other 
document to the hearing officer 
shall simultaneously send a copy 
to all other parties; provided, 
however? that this requirement 
shall not apply to requests for 
subpoenas . 

(d) A party need not be 
represented by an attorney. If 
a party has notified other 
parties of that party's 
representation by an attorney, 
all communications shall bo 
directed to that attorney. 

(c) Nonparties 

( 1 ) With the approval 
of the hearing officer, any 
person may offer testimony or 
other evidence relevant to the 
case. Any nonparty offering 
testimony or other evidence may 
be questioned by parties to the 
case and by the hearing officer. 



NORTH CAROLINA REGISTER 



67 



(2) The hearing 
officer may allow nonparties to 
question witnesses if deemed 
necessary for the development of 
a full and complete record. 

.0020 WITNESSES 

Any party may be a witness 
and may present witnesses on the 
party's behalf at the hearing. 
All oral testimony at the 
hearing shall be under oath or 
affirmation and shall be 
recorded. At the request of a 
party or upon the hearing 
officer's own motion. the 
hearing officer may exclude 
witnesses from the hearing room 
so that they cannot hear the 
testimony of other witnesses. 

.0021 EVIDENCE 

The North Carolina Rules of 
Evidence as found in Chapter 8C 
of the General Statutes shall 
govern in all contested case 
proceedings, except as provided 
otherwise in these Rules and 
G.S. 150B-29. 

(1) The hearing officer 
may admit all evidence which has 
probative value, including 
evidence not reasonably 
available under Chapter SC of 
the General Statutes provided 
that in such cases the evidence 
admitted is the most reliable 
and substantial evidence 
available. "Reliable and 
substantial" as used herein 
refers to evidence on which 
reasonable, prudent persons are 
accustomed to rely in the 
conduct of their serious 
affairs. Irrelevant, 
incompetent, and immaterial or 
unduly repetitious evidence 
shall be excluded. A hearing 
officer may, in his discretion, 
exclude any evidence if its 
probative value is substantially 
outweighed by the risk that its 
admission will either: 

(a) necessitate undue 
consumption of time; or 

( b ) create 
substantial danger of undue 
prejudice or confusion. 

(2) Contemporaneous 
objections by a party or a 
party's attorney are not 
required in the course of a 
hearing in order to preserve the 
right to object to the 
consideration of evidence by the 
hearing officer i:i reaching a 
decision or by the court upon 
judicial review. 

(3) All evidence to be 
considered in the case, 
including all records and 
documents or a true and accurate 
photocopy, shall be offered and 
made a part of the record in the 



case. No other factual 
information or evidence shall be 
considered in the determination 
of the case. Documentary 
evidence incorporated by 
reference may be admitted only 
if tiic materials so incorporated 
are available for examination by 
the par tics . 

(4) Documentary evidence 
in the form of copies or 
excerpts may be received in the 
discretion of the hearing 
officer or upon agreement of the 
parties. Copies of a document 
shall be received to the same 
extent as the original document 
unless a genuine question is 
raised as to the accuracy or 
authenticity of the copy or, 
under the circumstances, it 
would be unfair to admit the 
copy in lieu of the original. 

(5) The hearing officer 
may take notice of judicially 
cognizable facts by entering a 
statement of the noticed fact 
and its source into the record. 
Upon timely request, any party 
shall be given the opportunity 
to contest the facts so noticed 

evidence 



of 



through submission 
and argument . 

(6) A party may call an 
adverse party or an officer, 
director, managing agent, or 
employee of the state or any 
political subdivision thereof or 
of a public or private 
corporation or of a partnership 
or association or body politic 
which is an adverse party, and 
interrogate that party by 
leading questions and contradict 
and impeach that party oa 
material matters in all respects 
as if that party had been called 
by the adverse party. The 
adverse party may be examined by 
that party's counsel upon the 
subject matter of that party's 
examination in chief under the 
rules applicable to direct 
examination, and may be 
cross-examined. contradicted, 
and impeached by any other party 
adversely affected by the 
testimony . 

.0022 OFFICIAL REC0P n 

All hearings an . the 
official record thereof under 
these Rules are open to the 
public. Official records are 
subject to public inspection 
upon reasonable request . A 
hearing officer nay, upon good 
cause shown. consistent with 
lav;, order an official record or 
a part thereof scaled. 

( 1 ) The official record 
shall be prepared in accordance 
with G.S. 150B-37(a) . 



68 



NORTH CAROLINA REGISTER 



(2) Transcripts of 

proceedings during which oral 
evidence is presented will be 
made only upon request of a 
party. The requesting party 
shall pay the cost of such 
transcript or copy thereof that 
the party orders and this cost 
shall include the cost of an 
original for the Office of 
Administrative Hearings. Cost 
shall be determined under 
supervision of the Chief Hearing 
Officer who, in cases deemed 
appropriate by him, may require 
an advance security deposit to 
cover the prospective cost. The 
security deposit shall be 
applied to the actual cost and 
any excess shall be returned to 
the party which submitted it. 

.0023 VENUE 

Venue shall be determined 
in accordance with G.S. 150B-24. 

.0024 CONDUCT OF HEARING 

Hearings s! 11 be 
conducted, as nearly as 
practical, in accordance with 
the practice in the Trial 
Division of the General Court of 
Justice . 

.0025 HEARING OFFICER'S 

PROPOSAL FOR DECISION: 
EXCEPTIONS 

(a) Within 45 days after 
conclusion of a < ntested case 
hearing, the hearing officer 
shall serve on all parties a 
copy of his proposed decision, 
opinion. order, or report 
containing findings of fact and 
conclusions of law. Service 
shall be as provided in 
Paragraph .0009(b) of this 
ChaiJ 

(b) The hearing officer's 
proposed decision shall be based 
exclusively on: 

( 1 ) The competent evidence 
and arguments presented during 
the course of the hearing and 
made a part of the record; 

(2) Stipulations of fact; 
and 

(3) Matters officially 
noticed . 

(c) The proposed decision 
shall be fully dispositive of 
all of the issues in the case 
essential to resolution of the 
controversy and shall contain: 

( 1 ) An appropriate 
caption; 

(2) The appearances of the 
part ies ; 

(3) A statement of the 
issues ; 

(4) References to specific 
statutes or regulations at 
issue ; 

(5) Findings of fact: 



(A) Undisputed facts; 
and 

(B) Specific findings 
on disputed facts; 

(6) Conclusions of lav; 
based upon specific findings of 
fact and applicable 
constitutional principles, 
statutes, and rules or 
regulations ; 

(7) The recommended 
decision, opinion, order, or 
report ; 

(8) In the discretion of 
the hearing officer, a 
memorandum giving legal reasons 
for his findings and 
conclusions; and 

(9) Notice of the right to 
file exceptions, proposed 
findings of fact, and proposed 
forms of order or other 
disposition and the time within 
which they must be filed. 

.0026 HEARING OFFICER'S 
RECOMMENDATION 

(a) Unless the hearing 
officer has determined in 
accordance with G.S. 
150B-33(b) (9) that rule as 
applied in the case is void, lie 
shall, within 30 days after the 
expiration of the period for 
filing exceptions to the hearing 
officer's proposed decision, 
prepare and serve upon all 
parties his recommended 
decision, opinion. order, or 
report which shall become a part 
of the official record in the 
case and which shall contain: 

( 1 ) All of the items 
specified in Subparagraphs 
.0025 (c)(1) through (6) of this 
Chapter; and 

(2) A statement 
identifying the agency that w;i"!l 
make the final decision in the 
case . 

(b) If the hearing officer 
has determined in accordance 
with G.S. 150B-33(b)(9) that a 
rule as applied in the case is 
void, he shall notify the 
parties of his decision and of 
their right to appeal under 
Article 4 of Chapter 'l SOB . 

(c) The hearing officer 
shall pjromptly forward a copy of 
the official record in the case 
to the agency . 

(d) Extensions of time 
limits . 

( 1 ) Upon good cause 
shown, the Chief Hearing Officer 
may extend the time limits for 
submission of the pi'oposed 
decision, filing of exceptions, 
and for issuing the recommended 
decision of the hearing officer. 

(2) Requests lor 
extcn .j.' ns must be submitted 
prior to the expiration of the 



NORTH CAROLINA REGISTER 



69 



period 
Rules. 



established by 
(3) Extensic 



these 
shall 




coir.pat ible 
dil igence . 



.0027 EX PARTE 

COMMUNICATIONS 
Ex parte communicat ions are 
governed by G.S. 1503-35. 

.0023 RECONSIDERATION OR 
REHEARING 
(a) After a hearing 
officer has issued a recommended 
decision, the hearing officer 
loses jurisdiction to amend the 
decision except for clerical or 



mathematical errors, 
recommended decision 
as a final decision 
G.S. 1503-23(a) 
150E-33(9) . 

( b ) If 
decision is 
agency as a 
petition for 
rehearing may 



the 



unless the 

is binding 

pursuant to 

or G.S. 

recommended 
binding on the 
final decision, a 
reconsideration or 
be filed with the 
Office of Administrative 
Hearings within 10 days of 
service of the recommended 
decision upon the petitioning 
party . 

.0029 AVAILABILITY OF COPIES 
These Rules and copies of 
all matters adopted by reference 
herein are available from the 
Office of Administrative 
Hearings at the cost established 
in 26 NCAC 1 .0 00 1 . 



70 



NORTH CAROLINA REGISTER 



NORTH CAROLINA ADMINISTRATIVE CODE 
LIST OF RULES AFFECTED 



EDITION X, NO. 1 

AGENCY 

CORRECTION: 

5 NCAC 2E .0702 

BOARD OF ELECTIONS: 

8 NCAC 7 .0001 - 

8 NCAC 8 .0001 - 

GOVERNOR'S OFFICE: 

9 NCAC 2 

9 NCAC 2 
9 NCAC 2 
9 NCAC 2 

HUMAN RESOURCES: 



EFFECTIVE: APRIL 1, 1936 
ACTION TAKEN 

Amended 



0002 Adopted 

0002 Adopted 



EXECUTIVE ORDER NO. 22 
January 8, 1985 

EXECUTIVE ORDER NO. 23 
January 29, 1986 

EXECUTIVE ORDER NO. 24 
February 13, 1986 

EXECUTIVE ORDER NO. 25 
February 21 , 1 986 



10 NCAC 


45H 


.0202 - 


.0203 


Amended 


NATURAL RESOURCES 








15 NCAC 


2D 


.0501 




Amended 


15 NCAC 


2D 


.0503 - 


.0509 


Amended 


15 NCAC 


2D 


.0514 




Amended 


15 NCAC 


2D 


.0524 




Amended 


15 NCAC 


2D 


.0533 




Amended 


15 NCAC 


2D 


.0535 




Amended 


15 NCAC 


2D 


.0916 - 


.0917 


Amended 


15 NCAC 


2H 


.0603 




Amended 


15 NCAC 


10B 


.01 15(b) 




Amended 


15 NCAC 


10F 


.0303(a)(3) 


Amended 


15 NCAC 


ion 


.1101 - 


1 103 


Adopted 


REVENUE : 










17 NCAC 


C\ A 


.0003 




Amended 


17 NCAC 


4A 


.0005 




Amended 


17 NCAC 


A3 


.0103 




Amended 


17 NCAC 


A3 


.3413 - 


3414 


Adopted 


17 NCAC 


4C 


.0301 




Amended 


17 NCAC 


4D 


.0505 




Amended 


17 NCAC 


qD 


.0507 




Amended 


17 NCAC 


4E 


.0103 




Amended 


17 NCAC 


AC 


.0201 - 


.0202 


Amended 


17 NCAC 


AC 


.0205 




Amended 


17 NCAC 


AH 


.0207 - 


.0208 


Repealed 


17 NCAC 


4E 


.0209 




Amended 


17 NCAC 


AE 


.0301 




Amended 


17 NCAC 


AT 


. 0A02 




Amended 


17 NCAC 


AE 


.060 1 




Amended 


17 NCAC 


AE 


.0705 




Repealed 


17 NCAC 


7B 


.0104 




Amended 


17 NCAC 


73 


. 06LJ 




Amended 


17 NCAC 


7B 


.3901 




Miner..' d 


17 NCAC 


7B 


.4002 




Amended 


17 NCAC 


73 


.4515 




Repealed 


17 NCAC 


7B 


.4701 




Amended 


TRANSPORTATION: 








19 A NCAC 


OF 


.0217 - 


.0219 


Amended 


19A NCAC 


2E 


.0221 - 


.0222 


Amended 


19A NCAC 


2E 


.070 1 - 


.0702 


Amended 


19A NCAC 


3D 


.0803 - 


.0327 


Adop ted 


19A NCAC 


AA 


.0005 - 


.0006 


Amended 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT 



1 
2 

3 
4 

5 

6 

7 

C 

9 
10 
1 1 
12 
13 
14A 
15 
16 
17 
18 
19A 
20 
X21 
22 
23 
24 
25 
26 



Adm 
Agr 
Aud 
Con 
Cor 
Con 
Cul 
Ele 
Gov 
Hum 
Ins 
Jus 
Lab 
Cri 
Nat 
Edu 
Rev 
Sec 
Tra 
Tre 
Occ 
Adm 
Corn 
Ind 
Per 
Off 



in 

ic 
it 
me 

re 
nc 

tu 
ct 
ei- 
an 
ur 
hi 
or 
me 
ur 
ca 
en 
re 
nc 
as 
up 
in 
niu 
ep 
so 
ic 



as 
ul 
or 
re 

ct 
il 
ra 
io 
no 
R 
an 
ce 

'c 

nl 
bi 

ue 

ba 
po 
ur 

at 
is 

ni 
en 

nn 
e 



bration, Department of 

ture, Department of 
, Department of State 
e, Department of 

ns. Department of 

f State 

Resources, Department 

, State Board of 



io 
o 

1 

ns 
r 

es 
ce 

De 

on 

R 

on 

ry 
rt 
er 
io 
tr 

ty 
de 
el 

of 



ources, Department of 

, Department of 

Department of 

partment of 

trol , Department of 

esources and Community Development 

Department of 
Department of 

of State 
at ion, Department of 
, Department of State 
nal Licensing Boards 
ative Procedures 

Colleges, Department of 
nt Agencies 
. Department of State 

Administrative Hearings 



NOTE: Title 21 contains the chapters of the various 
occupational licensing boards. 



CHAPTER 

2 

4 

6 


10 
12 
14 
16 
16 
20 
21 
2 2 
26 
28 
30 
51 
32 
33 
34 
36 
37 
33 
40 
42 
44 
46 

4 a 

50 
5 2 
53 
54 
56 
58 
60 
62 
64 

66 



Examiners 
for 



of 
Board 



LICENSING BOARD 

Architecture , Board of 

Auctioneers. Commission for 

Barber Examiners, Board of 

Certified Fublic Accountant Examiners 

Chiropract ic Examiners, Board of 

Contractors, Licensing Boax'd for 

Cosmetic Art Examiners, Board of 

Dental Examiners, Board of 

Electrical Contractors, Board of 

Foresters, Board of Registration 

Geologists, Board of 

Hearing Aid Dealers and Fitters Board 

Landscape Architects, Licensing Board of 

Landscape Contractors, Registration Board 

Law Examiners, Board of 

Martial 8 Family Therapy Certification 

Medical Examiners, Board of 

Midwifery Joint Committee 

Mortuary Science, Board of 

Nursing, Board of 

Nursing Home Adninistra tors , 

Occupational Therapist, Board 

Opticians, Board of 

Optometry, Board of Examiners in 

Osteopathic Examination and Registration 

Pharmacy, Board of 

Physical Therapy, Examining Committee of 

Plumbing and Heating Contractors, Board of 

Podiatry Examiners, Board of 

Practicing Counselors, Board of 

Practicing Psychologists, Board of 

Professional Engineers and Land Surveyors 

Real Estate Commission 

Refrigeration Examiners, Board of 

Sanitarian Examiners, Board of 

Speech and Language Pathologists and 

Audiologis ts , Board of Examiners 
Veterinary Medical Board 



Board 
of 



of 



of 



72 



NORTH CAROLINA REGISTER 



CUMULATIVE INDEX 

(April 1, 1986 - March 31, 1937) 

Volume 1, Issue 1, Pages 1-73 

AO - Administrative Order 

E - Errata 

EO - Executive Order 

FR - Final Rule 

GS - General Statute 

JO - Judicial Order 

LRA - List of Rules Affected 

PR - Proposed Rule 

SD - Statement of Organization 

TR - Temporary Rule 

ADMINISTRATIVE ORDERS 
Beecher Reynolds Gray, 47 AO 
Fred Gilbert Morrison, Jr., 43 AO 
Angela Rebecca Bryant , 49 AO 
Thomas R. West, 50 AO 

EXECUTIVE ORDERS 

Executive Orders 1-25, 23-44 EO 

GENERAL STATUTES 



Chapter 7A 21-22 
Chapter 150B, 3-21 GS 



Appointment 

Robert A. Melott, 45 JD 



JUDICIAL ORDERS 



LIST OF RULES AFFECTED 



Volume 10, No. 1 

(April 1, 1986), 71 LRA 

OFFICE OF ADMINISTRATIVE HEARINGS 

General, 52 PR 

Hearings Division, 61 PR 

Rules Division, 52 PR 

STATEMENTS OF ORGANIZATION 

Office of Administrative Hearings, 51 SO 



NORTH CAROLINA REGISTER 



W9LZ bui|ojb3 qjjoM 'qSpiey 
999H J3MBJCI O d 

sSuueaH juijejjsiunupv jo aaryo 



3hhh 

1WV1S 
3DVld 



FOLD HERE 



NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 

ORDER FORM 



1 Please enter my subscription for the North Carolina Register to start with the issue. 

($95.00/year subscription) 

I Please enter my subscription for the NCAC in microfiche form starting with the edition. 

(Published in March and October: $40.00 per edition) 

3 Renew North Carolina Register □ Renew NCAC 

$ Check Enclosed □ Please bill me 

3 lease make checks payable to Office of Administrative Hearings 

VAME ADDRESS 

BTY STATE ZIP 

BONE 



Return to Office of Administrative Hearings - fold at line, staple at bottom and affix postage.) 



CHANGE OF ADDRESS: 



I . Present Address 



NAME 



ADDRESS 



CITY 



STATE 



ZIP 



2. New Address 



NAME 



ADDRESS 



CITY 



STATE 



ZIP 



Office of Administrative Heai 

P. O. Drawer 11666 

Raleigh, North Carolina 27604 









FIRST CLASS MAIL 




g, POSTAGE 



124 : « 



M E T £ f* 

23 93 34* 



The University of North Carolina 
Law Library 

Van Hecke-Wettach Building 064 A 
Chapel Hill, N.C. 27514